I 

118TH CONGRESS 

2D SESSION H. R. 9245 

To make housing more affordable, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 2, 2024 

Mr. CLEAVER (for himself, Ms. SCHAKOWSKY, Ms. NORTON, Mr. KHANNA, 

Ms. LEE of California, Ms. MOORE of Wisconsin, Ms. BUSH, Ms. 

BALINT, Mr. FROST, Mr. JACKSON of Illinois, Ms. BONAMICI, Mrs. 

HAYES, Ms. TLAIB, Mrs. RAMIREZ, Mr. GARCI ́A of Illinois, Ms. 

PRESSLEY, Mr. AMO, Ms. OMAR, Ms. OCASIO-CORTEZ, Mr. GREEN of 

Texas, and Mr. GOMEZ) introduced the following bill; which was referred 

to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans’ Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To make housing more affordable, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘American Housing and Economic Mobility Act of 2024’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

TITLE I—MAKING HOUSING MORE AFFORDABLE 

Sec. 101. Local housing innovation grants. 

Sec. 102. Investing in affordable housing infrastructure. 

Sec. 103. Conditions for the sale of real estate-owned properties and non-performing loans. 

TITLE II—TAKING THE FIRST STEPS TO REVERSE THE LEGACY 

OF HOUSING DISCRIMINATION AND GOVERNMENT NEGLIGENCE 

Sec. 201. Down payment assistance program for first-time homebuyers. 

Sec. 202. Formula grant program for communities with an appraisal gap. 

Sec. 203. Strengthening the Community Reinvestment Act of 1977. 

Sec. 204. Amendments relating to credit union service to underserved areas. 

Sec. 205. Raising public welfare caps. 

Sec. 206. Temporary eligibility of certain direct descendants of certain veterans 

for housing loans guaranteed by the Secretary of Veterans Affairs. 

TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES 

Sec. 301. Expanding rights under the Fair Housing Act. 

Sec. 302. Improving outcomes in housing assistance programs. 

TITLE IV—ESTATE TAX REFORM 

Sec. 401. Amendment to Internal Revenue Code of 1986. 

Sec. 402. Rate adjustment. 

Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity 

trusts. 

Sec. 404. Certain transfer tax rules applicable to grantor trusts. 

Sec. 405. Elimination of generation-skipping transfer tax exemption for transfers to certain persons. 

Sec. 406. Simplifying gift tax exclusion for annual gifts. 

Sec. 407. Clarification regarding disallowance of step-up in basis for property 

held in certain grantor trusts. 

Sec. 408. Limitation on discounts; valuation rules for certain transfers of nonbusiness assets. 

Sec. 409. Surcharge on high income estates and trusts. 

Sec. 410. Modification of rules for value of certain farm, etc., real property. 

Sec. 411. Modification of estate tax rules with respect to land subject to conservation easements. 

TITLE V—ACCESSIBILITY REQUIREMENTS 

Sec. 501. Accessibility requirements. 

1 TITLE I—MAKING HOUSING 

2 MORE AFFORDABLE 

3 SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 

4 (a) DEFINITIONS.—In this section: 


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1 (1) ELEMENTARY SCHOOL; SECONDARY

2 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec3 ondary school’’ have the meanings given those terms 

4 in section 8101 of the Elementary and Secondary 

5 Education Act of 1965 (20 U.S.C. 7801). 

6 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti7 ty’’ means— 

8 (A) a State; 

9 (B) a unit of general local government; or 

10 (C) an Indian tribe. 

11 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

12 has the meaning given the term in section 4 of the 

13 Native American Housing Assistance and Self-De14 termination Act of 1996 (25 U.S.C. 4103). 

15 (4) INSTITUTION OF HIGHER EDUCATION.—The 

16 term ‘‘institution of higher education’’ has the 

17 meaning given the term in section 101 of the Higher 

18 Education Act of 1965 (20 U.S.C. 1001). 

19 (5) METROPOLITAN AREA; STATE; UNIT OF

20 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro21 politan area’’, ‘‘State’’, and ‘‘unit of general local 

22 government’’ have the meanings given those terms in 

23 section 102 of the Housing and Community Devel24 opment Act of 1974 (42 U.S.C. 5302). 


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1 (6) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Housing and Urban Development. 

3 (b) ESTABLISHMENT.—Not later than 1 year after 

4 the date of enactment of this Act, the Secretary shall es5 tablish a program to award grants on a competitive basis 

6 to eligible entities to— 

7 (1) reform local land use restrictions to bring 

8 down the costs of producing affordable housing; and 

9 (2) remove unnecessary barriers to building af10 fordable units in their communities. 

11 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv12 ing a grant under this section may use funds to— 

13 (1) carry out any of the activities described in 

14 section 105 of the Housing and Community Devel15 opment Act of 1974 (42 U.S.C. 5305); 

16 (2) carry out any of the activities permitted 

17 under the Local and Regional Project Assistance 

18 Program under section 6702 of title 49, United 

19 States Code; or 

20 (3) modernize, renovate, or repair facilities used 

21 by public elementary schools, public secondary 

22 schools, and public institutions of higher education, 

23 including modernization, renovation, and repairs 

24 that— 


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1 (A) promote physical, sensory, and envi2 ronmental accessibility; and 

3 (B) are consistent with a recognized green 

4 building rating system. 

5 (d) APPLICATION.— 

6 (1) IN GENERAL.—An eligible entity desiring a 

7 grant under this section shall submit to the Sec8 retary an application that demonstrates that the eli9 gible entity has carried out, or is in the process of 

10 carrying out, initiatives that facilitate the expansion 

11 of the supply of well-located affordable housing. 

12 (2) ACTIVITIES.—Initiatives that meet the cri13 teria described in paragraph (1)— 

14 (A) include— 

15 (i) establishing ‘‘by-right’’ develop16 ment, which allows jurisdictions to admin17 istratively approve new developments that 

18 are consistent with their zoning code; 

19 (ii) revising or eliminating off-street 

20 parking requirements to reduce the cost of 

21 housing production; 

22 (iii) instituting measures that 

23 incentivize owners of vacant land to rede24 velop the space into affordable housing or 

25 other productive uses; 


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1 (iv) revising minimum lot size require2 ments and bans or limits on multifamily 

3 construction to allow for denser and more 

4 affordable development; 

5 (v) instituting incentives to promote 

6 dense development, such as density bo7 nuses; 

8 (vi) passing inclusionary zoning ordi9 nances that require a portion of newly de10 veloped units to be reserved for low- and 

11 moderate-income renters or homebuyers; 

12 (vii) streamlining regulatory require13 ments and shortening processes, reforming 

14 zoning codes, or other initiatives that re15 duce barriers to housing supply elasticity 

16 and affordability; 

17 (viii) allowing accessory dwelling 

18 units; 

19 (ix) using local tax incentives to pro20 mote development of affordable housing; 

21 and 

22 (x) implementing measures that pro23 tect tenants from harassment and displace24 ment, including— 


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1 (I) providing access to counsel 

2 for tenants facing eviction; 

3 (II) the prohibition of eviction ex4 cept for just cause; 

5 (III) measures intended to pre6 vent or mitigate sudden increases in 

7 rents; 

8 (IV) the repeal of laws that pre9 vent localities from implementing a 

10 measure described in subclause (I), 

11 (II), or (III); 

12 (V) protections against construc13 tive eviction; 

14 (VI) tenant right-to-organize 

15 laws; 

16 (VII) a cause of action for ten17 ants to sue landlords who threaten or 

18 begin an illegal eviction; and 

19 (VIII) landlord-tenant mediation 

20 or other non-eviction diversion pro21 grams; and 

22 (B) do not include activities that alter or23 dinances that govern wage and hour laws, fam24 ily and medical leave laws, health and safety re25 quirements, prevailing wage laws, or protections 


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1 for workers’ health and safety, anti-discrimina2 tion, and right to organize. 

3 (3) RELATION TO CONSOLIDATED PLAN.—An 

4 eligible entity shall include in an application sub5 mitted under paragraph (1) a description of how the 

6 planning and development of eligible activities de7 scribed in subsection (c) may advance an objective, 

8 or an aspect of an objective, included in the com9 prehensive housing affordability strategy and com10 munity development plan of the eligible entity under 

11 part 91 of title 24, Code of Federal Regulations, or 

12 any successor regulation (commonly referred to as a 

13 ‘‘consolidated plan’’). 

14 (e) LABOR LAWS.— 

15 (1) IN GENERAL.—All laborers and mechanics 

16 employed by contractors or subcontractors in the 

17 performance of construction work financed in whole 

18 or in part with a grant received under this section 

19 shall be paid wages at rates not less than those pre20 vailing on similar construction in the locality, as de21 termined by the Secretary of Labor in accordance 

22 with subchapter IV of chapter 31 of title 40, United 

23 States Code (commonly known as the ‘‘Davis-Bacon 

24 Act’’). 


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1 (2) AUTHORITY AND FUNCTIONS.—With re2 spect to the labor standards specified in paragraph 

3 (1), the Secretary of Labor shall have the authority 

4 and functions set forth in Reorganization Plan 

5 Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

6 App.) and section 3145 of title 40, United States 

7 Code. 

8 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section 

10 $2,000,000,000 for each of fiscal years 2025 through 

11 2029. 

12 SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA13 STRUCTURE. 

14 (a) HOUSING TRUST FUND.—Section 1338(a) of the 

15 Federal Housing Enterprises Financial Safety and Sound16 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add17 ing at the end the following: 

18 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

19 There is authorized to be appropriated to the Hous20 ing Trust Fund $44,500,000,000 for each of fiscal 

21 years 2025 through 2034.’’. 

22 (b) CAPITAL MAGNET FUND.—Section 1339 of the 

23 Federal Housing Enterprises Financial Safety and Sound24 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 

25 at the end the following: 


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1 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

2 is authorized to be appropriated to the Capital Magnet 

3 Fund $2,500,000,000 for each of fiscal years 2025 

4 through 2034.’’. 

5 (c) PUBLIC HOUSING CAPITAL FUND.—Section 

6 9(c)(2)(A) of the United States Housing Act of 1937 (42 

7 U.S.C. 1437g(c)(2)(A)) is amended to read as follows: 

8 ‘‘(A) CAPITAL FUND.—For allocations of 

9 assistance from the Capital Fund, 

10 $70,000,000,000 for fiscal year 2025.’’. 

11 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 

12 Section 108 of the Native American Housing Assistance 

13 and Self-Determination Act of 1996 (25 U.S.C. 4117) is 

14 amended— 

15 (1) by striking ‘‘such sums as may be necessary 

16 for each of fiscal years 2009 through 2013’’ and in17 serting ‘‘$2,500,000,000 for fiscal year 2025 and 

18 such sums as may be necessary for each of fiscal 

19 years 2026 through 2034’’; and 

20 (2) by striking the second sentence. 

21 (e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO22 GRAM.—Section 824 of the Native American Housing As23 sistance and Self-Determination Act of 1996 (25 U.S.C. 

24 4243) is amended by striking ‘‘such sums as may be nec25 essary for each of fiscal years 2001, 2002, 2003, 2004, 


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1 and 2005’’ and inserting ‘‘$50,000,000 for fiscal year 

2 2025 and such sums as may be necessary for each of fiscal 

3 years 2026 through 2034’’. 

4 (f) RURAL HOUSING PROGRAMS.—Out of funds in 

5 the Treasury not otherwise appropriated, there is appro6 priated for fiscal year 2025— 

7 (1) to provide direct loans under section 502 of 

8 the Housing Act of 1949 (42 U.S.C. 1472), 

9 $420,000,000; 

10 (2) to provide assistance under section 514 of 

11 such Act (42 U.S.C. 1484), $54,000,000; 

12 (3) to provide assistance under section 515 of 

13 such Act (42 U.S.C. 1485), $420,000,000; 

14 (4) to provide assistance under section 516 of 

15 such Act (42 U.S.C. 1486), $75,000,000; 

16 (5) to provide grants under section 523 of such 

17 Act (42 U.S.C. 1490c), $75,000,000; and 

18 (6) to provide funding to carry out the Multi19 family Preservation and Revitalization Demonstra20 tion Program of the Rural Housing Service (as au21 thorized under sections 514, 515, and 516 of such 

22 Act (42 U.S.C. 1484, 1485, 1486)), $240,000,000. 

23 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 

24 (1) DEFINITIONS.—In this subsection— 


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1 (A) the term ‘‘affordable rental housing 

2 unit’’ means a unit for which monthly rent is 

3 30 percent or less than the monthly area me4 dian income; and 

5 (B) the term ‘‘State’’ has the meaning 

6 given the term in section 3(b)(7) of the United 

7 States Housing Act of 1937 (42 U.S.C. 

8 1437a(b)(7)). 

9 (2) ESTABLISHMENT.—The Secretary of Hous10 ing and Urban Development shall establish and 

11 manage a fund, to be known as the ‘‘Middle Class 

12 Housing Emergency Fund’’, which shall be funded 

13 with any amounts as may be appropriated, trans14 ferred, or credited to the Fund under any provision 

15 law. 

16 (3) GRANTS.—From amounts available in the 

17 fund established under paragraph (2), the Secretary 

18 of Housing and Urban Development shall award 

19 grants on a competitive basis to State housing fi20 nance agencies located in a State in which— 

21 (A) there is a shortage of affordable rental 

22 housing units available to individuals with an 

23 income that is at or below the area median in24 come and median rents have risen on average 


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1 over the preceding 5 years substantially faster 

2 than the area median income; or 

3 (B) there is a shortage of housing units 

4 available for sale that are affordable to individ5 uals with an income that is at or below the area 

6 median income and median home prices have 

7 risen on average over the preceding 5 years 

8 substantially faster than the area median in9 come. 

10 (4) USE OF FUNDS.—Grants received under 

11 this subsection shall be used to fund— 

12 (A) the construction or acquisition, by non13 profit organizations, State or local agencies, 

14 special-purpose units of local government, resi15 dent councils organized to acquire housing, and 

16 other qualified purchasers (as defined by the 

17 Secretary), of rental housing units or units for 

18 purchase that are affordable to residents mak19 ing less than 120 percent of the area median 

20 income; and 

21 (B) measures to prevent tenant displace22 ment and harassment, including— 

23 (i) the provision of legal advice and 

24 representation for tenants facing eviction; 


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1 (ii) enforcement of anti-harassment 

2 laws; 

3 (iii) emergency rental assistance; and 

4 (iv) other measures as specified by the 

5 Secretary of Housing and Urban Develop6 ment. 

7 (5) LABOR LAWS.— 

8 (A) IN GENERAL.—All laborers and me9 chanics employed by contractors or subcontrac10 tors in the performance of construction work fi11 nanced in whole or in part with a grant received 

12 under this subsection shall be paid wages at 

13 rates not less than those prevailing on similar 

14 construction in the locality as determined by 

15 the Secretary of Labor in accordance with sub16 chapter IV of chapter 31 of title 40, United 

17 States Code (commonly known as the ‘‘Davis18 Bacon Act’’). 

19 (B) AUTHORITY AND FUNCTIONS.—With 

20 respect to the labor standards specified in sub21 paragraph (A), the Secretary of Labor shall 

22 have the authority and functions set forth in 

23 Reorganization Plan Numbered 14 of 1950 (64 

24 Stat. 1267; 5 U.S.C. App.) and section 3145 of 

25 title 40, United States Code. 


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1 (6) REGULATIONS.—The Secretary of Housing 

2 and Urban Development shall promulgate regula3 tions to carry out this subsection that include— 

4 (A) the metrics that the Secretary will use 

5 to determine eligibility for a grant under this 

6 subsection; 

7 (B) a requirement that grantees and sub8 grantees consult with impacted communities in 

9 policymaking and planning for the construction 

10 or acquisition of housing units as described in 

11 paragraph 4(A); and 

12 (C) a requirement that all housing units 

13 constructed or acquired using grants awarded 

14 under the subsection are affordable to residents 

15 making less than 120 percent of the area me16 dian income in perpetuity. 

17 (7) APPROPRIATIONS.—Out of funds in the 

18 Treasury not otherwise appropriated, there is appro19 priated to the fund established under this subsection 

20 $4,000,000,000 for fiscal year 2025. 

21 SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE22 OWNED PROPERTIES AND NON-PERFORMING 

23 LOANS. 

24 (a) FINDINGS.—Congress finds that— 


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1 (1) the Federal Housing Administration, the 

2 Federal National Mortgage Association, and the 

3 Federal Home Loan Mortgage Corporation provide 

4 critical homeownership opportunities that greatly 

5 benefit individuals, families, and communities; and 

6 (2) it is the purpose of this section to— 

7 (A) preserve owner-occupied homes with 

8 mortgages insured by the Federal Housing Ad9 ministration or purchased by the Federal Na10 tional Mortgage Association or the Federal 

11 Home Loan Mortgage Corporation for contin12 ued use as owner-occupied homes; and 

13 (B) direct that, upon the sale of those 

14 properties or transfer of those mortgages, cer15 tain percentages of those properties are sold to 

16 low- and moderate-income homeowners. 

17 (b) LOANS INSURED BY THE FEDERAL HOUSING AD18 MINISTRATION.—Title II of the National Housing Act (12 

19 U.S.C. 1707 et seq.) is amended by adding at the end 

20 the following: 

21 ‘‘SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES. 

22 ‘‘(a) DEFINITIONS.—In this section— 

23 ‘‘(1) the term ‘Claim Without Conveyance of 

24 Title program’ means the program of the Federal 

25 Housing Administration carried out under section 


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1 203.368 of title 24, Code of Federal Regulations, or 

2 any successor regulation; and 

3 ‘‘(2) the term ‘community partner’ has the 

4 meaning given the term ‘nonprofit organization’ in 

5 section 229 of the Low-Income Housing Preserva6 tion and Resident Homeownership Act of 1990 (12 

7 U.S.C. 4119). 

8 ‘‘(b) REQUIREMENT.—Not later than 1 year after the 

9 date of enactment of this section, the Secretary shall de10 velop programs within the Federal Housing Administra11 tion to ensure that not less than 75 percent of the single12 family residential properties conveyed to the Federal 

13 Housing Administration after foreclosure or conveyed to 

14 third parties under the Claim Without Conveyance of Title 

15 program are sold— 

16 ‘‘(1) directly to an owner-occupant; or 

17 ‘‘(2) to community partners that will— 

18 ‘‘(A) rehabilitate or develop the property; 

19 and 

20 ‘‘(B) sell the property to an owner-occu21 pant. 

22 ‘‘(c) GUIDELINES.—Not later than 1 year after the 

23 date of enactment of this section, the Secretary shall de24 velop guidelines for the Claim Without Conveyance of Title 

25 program that provide an exclusive listing period during 


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1 which only eligible Governmental Entities, HUD-approved 

2 Nonprofit Organizations, and Owner-Occupant Buyers 

3 may submit bids. 

4 ‘‘(d) ANTI-PREDATORY FEATURE.—Unless the Sec5 retary provides prior approval, the Secretary shall prohibit 

6 any purchaser of a real estate-owned property of the Fed7 eral Housing Administration from reselling the property 

8 within 15 years of purchase using a land installment con9 tract or through any other mechanism that does not trans10 fer title to the buyer at the time of sale. 

11 ‘‘SEC. 260. SALE OF NON-PERFORMING LOANS. 

12 ‘‘(a) DEFINITIONS.—In this section— 

13 ‘‘(1) the term ‘community partner’ has the 

14 meaning given the term in section 259; and 

15 ‘‘(2) the term ‘covered mortgage’— 

16 ‘‘(A) means any mortgage insured under 

17 this title that is secured by a single-family resi18 dential property; and 

19 ‘‘(B) includes the promissory note secured 

20 by the mortgage described in subparagraph (A). 

21 ‘‘(b) RESTRICTION ON SALE OR TRANSFER.—Except 

22 as provided in this section, the Secretary may not sell or 

23 transfer any covered mortgage. 

24 ‘‘(c) CONDITIONS FOR SALE OR TRANSFER.— 

25 ‘‘(1) IN GENERAL.—The Secretary— 


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1 ‘‘(A) may sell or transfer a covered mort2 gage only if— 

3 ‘‘(i) the capital level of the Fund is 

4 substantially below the capital ratio re5 quired under section 205(f)(2); 

6 ‘‘(ii) the Secretary certifies that other 

7 reasonable measures are not available to 

8 restore the Fund to that capital ratio; and 

9 ‘‘(iii) the Secretary complies with 

10 paragraph (2)(C), if applicable; and 

11 ‘‘(B) may sell or transfer only such covered 

12 mortgages as are necessary to assist in restora13 tion of that capital ratio. 

14 ‘‘(2) REQUIREMENTS FOR THE SECRETARY.— 

15 ‘‘(A) IN GENERAL.—If the Secretary in16 tends to sell or transfer a covered mortgage, the 

17 Secretary shall provide the current borrower 

18 and all owners of record of the property secur19 ing the covered mortgage, or require that the 

20 current borrower and owners of record be pro21 vided, a separate written notice of the intent to 

22 sell the covered mortgage that— 

23 ‘‘(i) is mailed via certified and first 

24 class mail not less than 90 days before the 


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1 date on which the loan is included in any 

2 proposed sale; and 

3 ‘‘(ii) includes— 

4 ‘‘(I) a description of the loss 

5 mitigation options of the Federal 

6 Housing Administration that are 

7 available to borrowers in financial dis8 tress and the obligation of servicers to 

9 consider borrowers in default for those 

10 options; 

11 ‘‘(II) a description of the actions 

12 that the servicer of the loan has taken 

13 to review and implement those options 

14 for the borrower; and 

15 ‘‘(III) a description of the proce16 dures the borrower may use to contest 

17 with the Secretary the compliance by 

18 the servicer with that obligation. 

19 ‘‘(B) JUDICIAL REVIEW.—The determina20 tion of the Secretary to authorize the sale of a 

21 mortgage insured under this title shall be re22 viewable under chapter 7 of title 5, United 

23 States Code, for abuse of discretion and arbi24 trary and capricious agency action. 


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1 ‘‘(C) AUCTIONS.—The Secretary may not 

2 sell any covered mortgage through any type of 

3 non-performing loan sale auction program until 

4 the Secretary issues rules, through the notice 

5 and comment rule making procedures under 

6 section 553 of title 5, United States Code, that 

7 address essential aspects of any non-performing 

8 loan sale program, including— 

9 ‘‘(i) the method of selection of loans 

10 for sale; 

11 ‘‘(ii) notice to borrowers prior to in12 clusion of the loan in a sale; and 

13 ‘‘(iii) review of loss mitigation status 

14 prior to the sale, selection of eligible bid15 ders, loss mitigation guidelines applicable 

16 to loan purchasers, and reporting require17 ments for purchasers. 

18 ‘‘(3) CERTIFICATION REQUIREMENT FOR LEND19 ERS AND SERVICERS.— 

20 ‘‘(A) CERTIFICATION.—As a condition to 

21 payment of an insurance claim under this title 

22 in connection with any non-performing loan 

23 sale, the lender or servicer of the loan shall pro24 vide the Secretary and the borrower with writ25 ten certification of the loss mitigation review 


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1 contained in the FHA Single Family Housing 

2 Policy Handbook 4000.1, or any successor 

3 handbook, which certification shall include a de4 scription of the actions the lender or servicer 

5 has taken, prior to transfer of the loan to the 

6 Secretary, to— 

7 ‘‘(i) review the borrower for all avail8 able loss mitigation options of the Federal 

9 Housing Administration; and 

10 ‘‘(ii) implement the options described 

11 in clause (i) that are appropriate to the 

12 borrower. 

13 ‘‘(B) FALSE STATEMENTS.— 

14 ‘‘(i) IN GENERAL.—Any false state15 ment provided in a certification described 

16 in subparagraph (A) shall be a basis for— 

17 ‘‘(I) recovery by the Secretary of 

18 any amounts paid under the insurance 

19 claim and any other penalties and 

20 sanctions authorized under Federal 

21 law; and 

22 ‘‘(II) a private right of action by 

23 the borrower against the lender and 

24 servicer, with remedies to include 

25 compensatory and punitive damages 


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1 and an assessment of costs and attor2 ney’s fees. 

3 ‘‘(ii) TRANSFERS.—Unless a bona fide 

4 purchaser has acquired title to the prop5 erty as a primary residence— 

6 ‘‘(I) a certification described in 

7 subparagraph (A) that contains a 

8 false statement shall be a basis for re9 voking the transfer of the property; 

10 and 

11 ‘‘(II) the pre-sale lender and 

12 servicer of the property shall— 

13 ‘‘(aa) resume servicing the 

14 loan as a loan insured under this 

15 title; and 

16 ‘‘(bb) reimburse the Sec17 retary for any insurance claim 

18 paid and all costs related to the 

19 sale of the property. 

20 ‘‘(4) REQUIREMENTS FOR PURCHASERS.— 

21 ‘‘(A) IN GENERAL.—Each purchaser of a 

22 covered mortgage shall offer the borrower on 

23 the covered mortgage loss mitigation options 

24 that allow for payment reduction at least as 


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1 great as would be available to the borrower if 

2 the loan had not been sold. 

3 ‘‘(B) LOSS MITIGATION OPTIONS.—The 

4 specific formula, calculations, waterfall steps, 

5 and other terms for appropriate loss mitigation 

6 options described in subparagraph (A) shall be 

7 published by the Secretary, made available to 

8 the public, and included in a written notice 

9 given to borrowers before any acceleration or 

10 foreclosure is initiated after a loan sale. 

11 ‘‘(5) REQUIREMENTS FOR TRANSFEREES.— 

12 With respect to a transferee, including any subse13 quent transferee, of a covered mortgage that is sold 

14 under this title— 

15 ‘‘(A) the transferee shall certify in writing 

16 to the Secretary that the transferee will comply 

17 with the provisions of this section in the mar18 keting and transfer of any property received in 

19 the disposition of any transferred loan; 

20 ‘‘(B) the transferee shall provide to the 

21 Secretary records documenting that the trans22 fers of those properties are in compliance with 

23 this section; and 

24 ‘‘(C) the failure of the Secretary or the 

25 transferee to comply with the requirements 


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1 under this section for a loan in default shall be 

2 a defense to foreclosure, and a transferee may 

3 not execute a foreclosure judgment or order of 

4 sale, or conduct a foreclosure sale, until the 

5 transferee has complied with all requirements 

6 under this section. 

7 ‘‘(d) LIMITATIONS.—With respect to covered mort8 gages that are sold under this title and acquired by the 

9 buyer through foreclosure sale, not less than 90 percent 

10 of the properties that are the subject of the covered mort11 gages shall be— 

12 ‘‘(1) sold to owner-occupants; 

13 ‘‘(2) operated or transferred to an entity that 

14 will operate the property as affordable rental hous15 ing for households below 80 percent of the area me16 dian income for a period of not less than 15 years; 

17 or 

18 ‘‘(3) transferred or donated to a nonprofit 

19 agency that is certified by the Secretary and will re20 develop the property for owner occupancy or afford21 able rental housing. 

22 ‘‘(e) PRIORITIZATION OF SALES.—The Secretary 

23 shall implement policies, procedures, and controls to— 

24 ‘‘(1) identify and recruit community partners; 


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1 ‘‘(2) engage in consultations with community 

2 partners before the sale of a pool of covered mort3 gages under this title to determine whether that sale 

4 can be designed to meet the specific needs of the 

5 communities served by the community partners; and 

6 ‘‘(3) prioritize the sale of pools of single-family 

7 mortgages to community partners by— 

8 ‘‘(A) designing pools of covered mortgages 

9 for direct sale to a community partner, the 

10 price of which shall be set by the Secretary 

11 based on a pricing model that considers— 

12 ‘‘(i) the current fair market value of 

13 the properties; and 

14 ‘‘(ii) the potential impact of fore15 closures on those properties to the value of 

16 other homes that secure mortgages insured 

17 under this title in the same census tract; 

18 or 

19 ‘‘(B) in the case of an auction, if the win20 ning bid is not from a community partner, per21 mitting any community partner that bid during 

22 that same auction to have a final opportunity to 

23 enter a higher bid on the pool.’’. 


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1 (c) FANNIE MAE.—Section 302 of the Federal Na2 tional Mortgage Association Charter Act (12 U.S.C. 1717) 

3 is amended by adding at the end the following: 

4 ‘‘(d)(1) In this subsection, the term ‘covered mort5 gage’— 

6 ‘‘(A) means any mortgage that is secured by a 

7 single-family residential property; and 

8 ‘‘(B) includes the promissory note secured by 

9 the mortgage described in subparagraph (A). 

10 ‘‘(2) The corporation may not sell or transfer any 

11 covered mortgage under this section unless the require12 ments of this subsection are met. 

13 ‘‘(3)(A) If the corporation intends to sell or transfer 

14 a covered mortgage, the corporation shall provide the cur15 rent borrower and all owners of record of the property se16 curing the covered mortgage, or require that the current 

17 borrower and owners of record be provided, a separate 

18 written notice of the intent to sell the covered mortgage 

19 that— 

20 ‘‘(i) is mailed via certified and first class mail 

21 not less than 90 days before the date on which the 

22 loan is included in any proposed sale; and 

23 ‘‘(ii) includes— 

24 ‘‘(I) a description of the loss mitigation op25 tions of the corporation that are available to 


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1 borrowers in financial distress and the obliga2 tion of servicers to consider borrowers in de3 fault for those options; 

4 ‘‘(II) a description of the actions that the 

5 servicer of the loan has taken to review and im6 plement those options for the borrower; and 

7 ‘‘(III) a description of the procedures the 

8 borrower may use to contest with the corpora9 tion the compliance by the servicer with that 

10 obligation. 

11 ‘‘(B) The Federal Housing Finance Agency, as re12 ceiver for the corporation, may not authorize the corpora13 tion to sell any covered mortgage through any type of non14 performing loan sale auction program until the Director 

15 of the Federal Housing Finance Agency issues rules, 

16 through the notice and comment rule making procedures 

17 under section 553 of title 5, United States Code, that ad18 dress essential aspects of any non-performing loan sale 

19 program, including— 

20 ‘‘(i) the method of selection of loans for sale; 

21 ‘‘(ii) notice to borrowers prior to inclusion of 

22 the loan in a sale; and 

23 ‘‘(iii) review of loss mitigation status prior to 

24 the sale, selection of eligible bidders, loss mitigation 


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1 guidelines applicable to loan purchasers, and report2 ing requirements for purchasers. 

3 ‘‘(4)(A) Each purchaser of a covered mortgage shall 

4 offer the borrower on the covered mortgage loss mitigation 

5 options that allow for payment reduction at least as great 

6 as would be available to the borrower if the loan had not 

7 been sold. 

8 ‘‘(B) The specific formula, calculations, waterfall 

9 steps, and other terms for loss mitigation options de10 scribed in subparagraph (A) shall be published by the cor11 poration, made available to the public, and included in a 

12 written notice given to borrowers before any acceleration 

13 or foreclosure is initiated after a loan sale. 

14 ‘‘(5) With respect to a transferee, including any sub15 sequent transferee, of a covered mortgage that is sold by 

16 the corporation under this section— 

17 ‘‘(A) the transferee shall certify in writing to 

18 the corporation that the transferee will comply with 

19 the provisions of this subsection in the marketing 

20 and transfer of any property received in the disposi21 tion of any transferred loan; 

22 ‘‘(B) the transferee shall provide to the corpora23 tion records documenting that the transfers of those 

24 properties are in compliance with this subsection; 

25 and 


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1 ‘‘(C) the failure of the corporation or the trans2 feree to comply with the requirements under this 

3 subsection for a loan in default shall be a defense to 

4 foreclosure, and a transferee may not execute a fore5 closure judgment or order of sale, or conduct a fore6 closure sale, until the transferee has complied with 

7 all requirements under this subsection. 

8 ‘‘(6) With respect to covered mortgages that are sold 

9 by the corporation under this section and foreclosed upon 

10 by the buyer, not less than 90 percent of the properties 

11 that are the subject of the covered mortgages in an auc12 tion shall be— 

13 ‘‘(A) sold to owner-occupants; 

14 ‘‘(B) operated or transferred to an entity that 

15 will operate the property as affordable rental hous16 ing for households below 80 percent of the area me17 dian income for a period of not less than 15 years; 

18 or 

19 ‘‘(C) transferred or donated to a nonprofit 

20 agency that is certified by the corporation and will 

21 redevelop the property for owner occupancy or af22 fordable rental housing. 

23 ‘‘(7) The corporation shall implement policies, proce24 dures, and controls to— 

25 ‘‘(A) identify and recruit community partners; 


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1 ‘‘(B) engage in consultations with community 

2 partners before the sale of a pool of covered mort3 gages under this section to determine whether that 

4 sale can be designed to meet the specific needs of 

5 the communities served by the community partners; 

6 and 

7 ‘‘(C) prioritize the sale of pools of single-family 

8 mortgages to community partners by— 

9 ‘‘(i) designing pools of covered mortgages 

10 for direct sale to a community partner, the 

11 price of which shall be set by the corporation 

12 based on a pricing model that considers— 

13 ‘‘(I) the current fair market value of 

14 the properties; and 

15 ‘‘(II) the potential impact of fore16 closures on those properties to the value of 

17 other homes in the same census tract; or 

18 ‘‘(ii) in the case of an auction, if the win19 ning bid is not from a community partner, per20 mitting any community partner that bid during 

21 that same auction to have a final opportunity to 

22 enter a higher bid on the pool.’’. 

23 (d) FREDDIE MAC.—Section 305 of the Federal 

24 Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 

25 is amended by adding at the end the following: 


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1 ‘‘(e)(1) In this subsection, the term ‘covered mort2 gage’— 

3 ‘‘(A) means any mortgage that is secured by a 

4 single-family residential property; and 

5 ‘‘(B) includes the promissory note secured by 

6 the mortgage described in subparagraph (A). 

7 ‘‘(2) The Corporation may not sell or transfer any 

8 covered mortgage under this section unless the require9 ments of this subsection are met. 

10 ‘‘(3)(A) If the Corporation intends to sell or transfer 

11 a covered mortgage, the Corporation shall provide the cur12 rent borrower and all owners of record of the property se13 curing the covered mortgage, or require that the current 

14 borrower and owners of record be provided, a separate 

15 written notice of the intent to sell the covered mortgage 

16 that— 

17 ‘‘(i) is mailed via certified and first class mail 

18 not less than 90 days before the date on which the 

19 loan is included in any proposed sale; and 

20 ‘‘(ii) includes— 

21 ‘‘(I) a description of the loss mitigation op22 tions of the Corporation that are available to 

23 borrowers in financial distress and the obliga24 tion of servicers to consider borrowers in de25 fault for those options; 


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1 ‘‘(II) a description of the actions that the 

2 servicer of the loan has taken to review and im3 plement those options for the borrower; and 

4 ‘‘(III) a description of the procedures the 

5 borrower may use to contest with the Corpora6 tion the compliance by the servicer with that 

7 obligation. 

8 ‘‘(B) The Federal Housing Finance Agency, as re9 ceiver for the Corporation, may not sell any covered mort10 gage through any type of non-performing loan sale auction 

11 program until the Director of the Federal Housing Fi12 nance Agency issues rules, through the notice and com13 ment rule making procedures under section 553 of title 

14 5, United States Code, that address essential aspects of 

15 any non-performing loan sale program, including— 

16 ‘‘(i) the method of selection of loans for sale; 

17 ‘‘(ii) notice to borrowers prior to inclusion of 

18 the loan in a sale; and 

19 ‘‘(iii) review of loss mitigation status prior to 

20 the sale, selection of eligible bidders, loss mitigation 

21 guidelines applicable to loan purchasers, and report22 ing requirements for purchasers. 

23 ‘‘(4)(A) Each purchaser of a covered mortgage shall 

24 offer the borrower on the covered mortgage loss mitigation 

25 options that allow for payment reduction at least as great 


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1 as would be available to the borrower if the loan had not 

2 been sold. 

3 ‘‘(B) The specific formula, calculations, waterfall 

4 steps, and other terms for loss mitigation options de5 scribed in subparagraph (A) shall be published by the Cor6 poration, made available to the public, and included in a 

7 written notice given to borrowers before any acceleration 

8 or foreclosure is initiated after a loan sale. 

9 ‘‘(5) With respect to a transferee, including any sub10 sequent transferee, of a covered mortgage that is sold by 

11 the Corporation under this section— 

12 ‘‘(A) the transferee shall certify in writing to 

13 the Corporation that the transferee will comply with 

14 the provisions of this subsection in the marketing 

15 and transfer of any property received in the disposi16 tion of any transferred loan; 

17 ‘‘(B) the transferee shall provide to the Cor18 poration records documenting that the transfers of 

19 those properties are in compliance with this sub20 section; and 

21 ‘‘(C) the failure of the Corporation or the trans22 feree to comply with the requirements under this 

23 subsection for a loan in default shall be a defense to 

24 foreclosure, and a transferee may not execute a fore25 closure judgment or order of sale, or conduct a foreVerDate Sep 11 2014 19:41 Sep 10, 2024 Jkt 049200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H9245.IH H9245

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1 closure sale, until the transferee has complied with 

2 all requirements under this subsection. 

3 ‘‘(6) With respect to covered mortgages that are sold 

4 by the Corporation under this section and foreclosed upon 

5 by the buyer, not less than 90 percent of the properties 

6 that are the subject of the covered mortgages in an auc7 tion shall be— 

8 ‘‘(A) sold to owner-occupants; 

9 ‘‘(B) operated or transferred to an entity that 

10 will operate the property as affordable rental hous11 ing for households below 80 percent of the area me12 dian income for a period of not less than 15 years; 

13 or 

14 ‘‘(C) transferred or donated to a nonprofit 

15 agency that is certified by the Corporation and will 

16 redevelop the property for owner occupancy or af17 fordable rental housing. 

18 ‘‘(7) The Corporation shall implement policies, proce19 dures, and controls to— 

20 ‘‘(A) identify and recruit community partners; 

21 ‘‘(B) engage in consultations with community 

22 partners before the sale of a pool of covered mort23 gages under this section to determine whether that 

24 sale can be designed to meet the specific needs of 


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1 the communities served by the community partners; 

2 and 

3 ‘‘(C) prioritize the sale of pools of single-family 

4 mortgages to community partners by— 

5 ‘‘(i) designing pools of covered mortgages 

6 for direct sale to a community partner, the 

7 price of which shall be set by the Corporation 

8 based on a pricing model that considers— 

9 ‘‘(I) the current fair market value of 

10 the properties; and 

11 ‘‘(II) the potential impact of fore12 closures on those properties to the value of 

13 other homes in the same census tract; or 

14 ‘‘(ii) in the case of an auction, if the win15 ning bid is not from a community partner, per16 mitting any community partner that bid during 

17 that same auction to have a final opportunity to 

18 enter a higher bid on the pool.’’. 

19 (e) SALE OF RE-PERFORMING LOANS.—The Federal 

20 Housing Enterprises Financial Safety and Soundness Act 

21 of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting 

22 after section 1328 (12 U.S.C. 4548) the following: 

23 ‘‘SEC. 1329. SALE OF RE-PERFORMING LOANS. 

24 ‘‘(a) BULK AUCTION OR GROUP SALES.—An enter25 prise may not conduct bulk auctions or other group sales 


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1 of single family re-performing residential loans unless the 

2 following requirements are met: 

3 ‘‘(1) The enterprise establishes a system that 

4 provides priority to Federal, State, local, or Tribal 

5 governments or nonprofit organizations that have 

6 the capacity and experience required for buying, 

7 servicing, and resolving single family mortgage loans 

8 in a manner that promotes affordable housing, fair 

9 housing, affordable homeownership, provision of 

10 housing counseling, or neighborhood stabilization. 

11 ‘‘(2) Clear, written notice is sent by the enter12 prise or servicer through certified and first-class 

13 mail to the borrower and all owners of record, with 

14 a copy sent to the enterprise if sent by the servicer, 

15 not less than 90 days before the inclusion of the 

16 loan in any proposed sale— 

17 ‘‘(A) stating that the loan will be included 

18 in a bulk auction or group sale of re-performing 

19 loans; and 

20 ‘‘(B) describing the bulk auction or group 

21 sale process, including— 

22 ‘‘(i) the loss mitigation or other pro23 tections available to the borrower and 

24 other owners of record both before and 

25 after the auction or sale; and 


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1 ‘‘(ii) the obligations of the servicer of 

2 the loan before and after the auction or 

3 sale, including loss mitigation require4 ments. 

5 ‘‘(3) The enterprise requires in the terms of the 

6 bulk auction or group sale that purchasers take 

7 loans subject to the following requirements: 

8 ‘‘(A) The purchaser is required to offer 

9 targeted payment relief options to borrowers 

10 that become more than 60 days delinquent on 

11 their mortgage after their loan is sold that in12 cludes deferral of principal and term extension 

13 options that reduce payments to an affordable 

14 level. 

15 ‘‘(B) The purchaser is required to offer a 

16 deferral program to borrowers that become 

17 more than 60 days delinquent on their mort18 gage after their loan is sold that offers terms 

19 and protections at least as favorable as those 

20 available under loss mitigation guidelines of the 

21 enterprise, including the absence of fees, to bor22 rowers who can afford their pre-hardship mort23 gage payment. 

24 ‘‘(C) Failure by the purchaser to follow the 

25 established loss mitigation guidelines shall serve 


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1 as a defense to a judicial foreclosure and a 

2 basis to enjoin or otherwise stay a non-judicial 

3 foreclosure. 

4 ‘‘(D) Data reporting as provided under 

5 subsection (b)(1). 

6 ‘‘(E) If a property becomes vacant, the 

7 purchaser shall not release the lien until the 

8 property is sold or donated. 

9 ‘‘(F) Use of contract for deed, lease to 

10 own, or a land installment contract to sell or 

11 otherwise transfer any property that is secured 

12 by a purchased loan shall be prohibited unless 

13 the tenant or purchaser is a nonprofit organiza14 tion. 

15 ‘‘(b) DATA AND REPORTING.— 

16 ‘‘(1) PURCHASER REPORTING.—During the 4- 

17 year period following any auction or sale of single 

18 family re-performing residential mortgage loans 

19 under subsection (a), the Director shall require the 

20 enterprise to collect from each purchaser of such 

21 loans, including any subsequent purchaser of a loan, 

22 quarterly loan-level data regarding the treatment 

23 and outcome of the loan, including— 


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1 ‘‘(A) loan characteristics, including loan 

2 type, remaining loan term, loan to value ratio, 

3 number of months in arrears, and loan status; 

4 ‘‘(B) loss mitigation data, including wheth5 er loss mitigation was provided by the pur6 chaser, debt-to-income ratio and percent pay7 ment reduction for any modified loans, and per8 formance of modified loans; 

9 ‘‘(C) demographic data for each borrower 

10 and any co-borrower, including race, national 

11 origin, sex, ZIP Code, and census tract, and, if 

12 available, disability status and veteran status; 

13 and 

14 ‘‘(D) other purchaser actions, including 

15 charge offs and resales of loans and dates for 

16 such actions. 

17 ‘‘(2) SEMIANNUAL REPORTS TO CONGRESS.— 

18 The Director shall submit to Congress, and make 

19 publicly available at no cost to the public in a readily 

20 accessible format on the website of the Agency, 

21 semi-annual reports on— 

22 ‘‘(A) loans sold in an auction or sale under 

23 subsection (a) by each enterprise, disaggregated 

24 by pool, including— 


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1 ‘‘(i) the number of loans and types of 

2 loans; 

3 ‘‘(ii) mean and median delinquency 

4 and loan to value ratios at the time of the 

5 sale; 

6 ‘‘(iii) the number and percentage of 

7 loans modified prior to auction or sale; and 

8 ‘‘(iv) demographic and geographic 

9 data, including property locations by cen10 sus tract or larger geographic location if 

11 necessary to protect personally identifiable 

12 information; 

13 ‘‘(B) the performance of loans after an 

14 auction or sale under subsection (a), 

15 disaggregated by loan pool, including the initial 

16 purchaser, current owner, current servicer, data 

17 summarizing any alternatives to foreclosure of18 fered and enacted, and data summarizing the 

19 data collected under subparagraph (A); and 

20 ‘‘(C) the results of a fair lending analysis 

21 conducted based on the data in subparagraphs 

22 (A) and (B) to identify any discriminatory im23 pacts or outcomes associated with the auctions 

24 or sales. 


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1 ‘‘(c) PENALTIES FOR NONCOMPLIANCE.—The enter2 prises may forcibly retain loans or properties, without pro3 viding compensation, from purchasers that do not meet 

4 the requirements under subsection (a)(3). 

5 ‘‘(d) REGULATIONS.—The Director shall issue regu6 lations defining the terms of permissible auctions or sales 

7 in accordance with the requirements in this section.’’. 

8 TITLE II—TAKING THE FIRST 

9 STEPS TO REVERSE THE LEG10 ACY OF HOUSING DISCRIMI11 NATION AND GOVERNMENT 

12 NEGLIGENCE 

13 SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 

14 FIRST-TIME HOMEBUYERS. 

15 (a) DEFINITIONS.—In this section: 

16 (1) ELIGIBLE RESIDENT.—The term ‘‘eligible 

17 resident’’ means an individual who— 

18 (A) is a first-time homebuyer; 

19 (B) is a first-generation homebuyer; and 

20 (C) has an income that is less than— 

21 (i) 120 percent of the area median in22 come; or 

23 (ii) in the case of a homebuyer acquir24 ing a property for use as a principal resi25 dence that is located in a high-cost area, 


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1 as determined by the Secretary, 140 per2 cent of the area median income. 

3 (2) FIRST-GENERATION HOMEBUYER.—The 

4 term ‘‘first-generation homebuyer’’ means a home5 buyer who is, as self-attested by the homebuyer, an 

6 individual— 

7 (A) whose parents do not, or did not at the 

8 time of their death, to the best of the individ9 ual’s knowledge, have any present ownership in10 terest in a principal residence in any State, ex11 cluding ownership of heir property; and 

12 (B) whose spouse or domestic partner has 

13 not, during the 3-year period ending on the 

14 date of purchase of a property using a grant 

15 under subsection (b), had any present owner16 ship interest in a principal residence in any 

17 State, excluding ownership of heir property, 

18 without regard to whether the spouse or domes19 tic partner is a co-borrower on a mortgage for 

20 the property being purchased. 

21 (3) FIRST-TIME HOMEBUYER.—The term ‘‘first22 time homebuyer’’ means a homebuyer who is, as 

23 self-attested by the homebuyer, an individual (and if 

24 married or in a domestic partnership, the spouse or 

25 domestic partner of the individual) who, during the 


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1 3-year period ending on the date of purchase of a 

2 property using a grant under subsection (b)— 

3 (A) has had no present ownership in a 

4 principal residence in any State, excluding own5 ership of heir property; or 

6 (B) surrendered any present ownership in7 terest in a principal residence in any State, ex8 cluding ownership of heir property, as part of 

9 a divorce proceeding. 

10 (4) HEIR PROPERTY.—The term ‘‘heir prop11 erty’’ means residential property for which title— 

12 (A) passed by operation of law through in13 testacy; and 

14 (B) is held by 2 or more heirs as tenants 

15 in common. 

16 (5) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of Housing and Urban Development. 

18 (6) STATE.—The term ‘‘State’’ includes the 

19 District of Columbia and any territory or possession 

20 of the United States. 

21 (b) ESTABLISHMENT.—There is established in the 

22 Treasury of the United States a fund that— 

23 (1) shall be administered by the Secretary, act24 ing through the Office of Housing of the Depart25 ment of Housing and Urban Development; and 


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1 (2) shall be used— 

2 (A) to provide grants to eligible residents 

3 to purchase a property for use as a principal 

4 residence; 

5 (B) for outreach to financial institutions in 

6 targeted areas and eligible residents, including 

7 for the administration of that outreach; 

8 (C) for counseling or financial education 

9 administered by counseling agencies approved 

10 by the Secretary in order to ensure sustainable 

11 homeownership; and 

12 (D) to maintain any records required to 

13 implement this section. 

14 (c) GRANT AMOUNT.—An eligible resident may re15 ceive a grant under subsection (b) in an amount equal 

16 to— 

17 (1) not more than 3.5 percent of the appraised 

18 value of the property to be purchased; or 

19 (2) if the appraised value of the property to be 

20 purchased exceeds the principal obligation amount 

21 limitation for mortgages insured under title II of the 

22 National Housing Act (12 U.S.C. 1707 et seq.), 3.5 

23 percent of the maximum principal obligation limita24 tion for the property to be purchased. 


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1 (d) RELATION TO FHA LOAN.—An eligible resident 

2 shall not be required to obtain a mortgage that is insured 

3 under title II of the National Housing Act (12 U.S.C. 

4 1707 et seq.) as a condition of receiving a grant under 

5 subsection (b). 

6 (e) LAYERING OF ASSISTANCE.—Receipt by an eligi7 ble recipient of assistance for a down payment from a 

8 source other than the fund established under subsection 

9 (b), including assistance from the Federal Government, a 

10 State or local government, or any other public, private, 

11 or nonprofit source, shall not affect the eligibility of the 

12 eligible recipient for assistance under subsection (b). 

13 (f) REGULATIONS AND DATABASE.—Not later than 

14 1 year after the date of enactment of this Act, the Sec15 retary shall— 

16 (1) in consultation with interested parties, in17 cluding housing counseling agencies approved by the 

18 Secretary and individuals or groups with expertise in 

19 fair housing, promulgate regulations relating to the 

20 use of the fund established under subsection (b); 

21 (2) promulgate regulations relating to the dis22 bursement of funds under this section to ensure that 

23 an eligible resident is able to receive funds before 

24 the closing date for the home of the eligible resident, 

25 which may include creating a program that allows a 


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1 lender to be reimbursed by the fund established 

2 under subsection (b) if the lender— 

3 (A) provides an eligible resident with funds 

4 for the closing; or 

5 (B) allows an eligible resident to be 

6 preapproved to receive assistance under this 

7 section when arranging financing for the home 

8 of the eligible resident; and 

9 (3) establish methods to verify that an indi10 vidual is an eligible resident. 

11 (g) APPROPRIATION.—Out of funds in the Treasury 

12 not otherwise appropriated, there is appropriated to the 

13 fund established under subsection (b) such sums as may 

14 be necessary for each of fiscal years 2025 through 2034 

15 to carry out the activities under subsection (b)(2). 

16 (h) INCLUSION OF PROGRAM IN HOME BUYING IN17 FORMATION BOOKLETS.—Section 5(b) of the Real Estate 

18 Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 

19 is amended by inserting after paragraph (14) the fol20 lowing: 

21 ‘‘(15) Information relating to the down pay22 ment assistance program established under section 

23 201 of the American Housing and Economic Mobil24 ity Act of 2024.’’. 


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1 (i) INCLUSION OF PROGRAM AS MORTGAGE PROD2 UCT.—Section 203(f)(1) of the National Housing Act (12 

3 U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 

4 the down payment assistance program established under 

5 section 201 of the American Housing and Economic Mo6 bility Act of 2024,’’ after ‘‘mortgage products’’. 

7 (j) RELIANCE ON BORROWER ATTESTATIONS.—No 

8 additional documentation beyond the borrower’s attesta9 tion shall be required to demonstrate eligibility under 

10 paragraphs (2) and (3) of subsection (a), and no creditor 

11 shall be subject to liability, including monetary penalties 

12 or requirements to indemnify a Federal agency or repur13 chase a loan that has been sold or securitized, for the pro14 vision of down payment assistance under this section to 

15 a borrower who does not meet the eligibility requirements 

16 under those paragraphs if the creditor does so in good 

17 faith reliance on borrower attestations of eligibility re18 quired by those paragraphs or any regulation promulgated 

19 to carry out those paragraphs. 

20 (k) REPAYMENT OF ASSISTANCE.— 

21 (1) REQUIREMENT.—An eligible resident who 

22 receives a grant under subsection (b) to purchase a 

23 property for use as a principal residence and does 

24 not occupy the property as a principal residence for 

25 5 years or more shall repay to the Secretary a proVerDate Sep 11 2014 19:41 Sep 10, 2024 Jkt 049200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H9245.IH H9245

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1 portional amount of the grant based on the number 

2 of years, if any, for which the eligible resident has 

3 occupied the property as a principal residence. 

4 (2) LIMITATION.—Notwithstanding paragraph 

5 (1), an eligible resident who receives a grant under 

6 subsection (b) to purchase a property for use as a 

7 principal residence and does not occupy the property 

8 as a principal residence for 5 years or more shall not 

9 be liable to the Secretary for repayment under para10 graph (1) of this subsection if— 

11 (A) the failure to occupy the property as a 

12 principal residence is due at least in part to a 

13 hardship; or 

14 (B) the eligible resident sells the property 

15 before the expiration of the 5-year period begin16 ning on the date of acquisition and the capital 

17 gains from the sale to a bona fide purchaser in 

18 an arm’s length transaction are less than the 

19 amount the eligible resident would be required 

20 to repay under paragraph (1). 

21 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 

22 WITH AN APPRAISAL GAP. 

23 (a) DEFINITIONS.—In this section— 

24 (1) the term ‘‘neighborhood with an appraisal 

25 gap’’ means a census tract in which the median sales 


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1 price of a dwelling unit is lower than the median 

2 cost to acquire and rehabilitate, or build, a new 

3 dwelling unit; 

4 (2) the term ‘‘Secretary’’ means the Secretary 

5 of Housing and Urban Development; and 

6 (3) the term ‘‘State’’ has the meaning given the 

7 term in section 3(b)(7) of the United States Hous8 ing Act of 1937 (42 U.S.C. 1437a(b)(7)). 

9 (b) ESTABLISHMENT.—The Secretary shall establish 

10 a formula grant program to provide funding to States to 

11 support neighborhoods with an appraisal gap, including 

12 borrowers with negative equity in their primary residence 

13 in those neighborhoods, through— 

14 (1) measures that provide funds to borrowers 

15 to— 

16 (A) pay down arrears on an otherwise af17 fordable loan; 

18 (B) pay down arrears or principal on a 

19 loan in order to qualify for a loan modification 

20 that will allow the borrower to keep the home; 

21 (C) pay off, or pay down part of, a second 

22 mortgage or home equity line of credit; 

23 (D) pay off a small-dollar mortgage; 

24 (E) pay delinquent taxes and tax liens; 


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1 (F) pay off delinquent water or sewer bills 

2 and liens; and 

3 (G) pay for home repairs or maintenance 

4 or for modifications to bring the home into 

5 compliance with any applicable codes; and 

6 (2) programs to purchase or rehabilitate vacant 

7 or distressed properties to enhance neighborhood 

8 property values. 

9 (c) FORMULA.—The Secretary shall distribute 

10 amounts under this section to States based on— 

11 (1) the number of borrowers with a primary 

12 residence with negative equity in each State; and 

13 (2) the share of neighborhoods with an ap14 praisal gap in each State. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $5,000,000,000 for fiscal year 2025. 

18 SEC. 203. STRENGTHENING THE COMMUNITY REINVEST19 MENT ACT OF 1977. 

20 (a) SHORT TITLE.—This section may be cited as the 

21 ‘‘Community Reinvestment Reform Act of 2024’’. 

22 (b) AMENDMENTS TO THE COMMUNITY REINVEST23 MENT ACT OF 1977.—The Community Reinvestment Act 

24 of 1977 (12 U.S.C. 2901 et seq.) is amended— 


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1 (1) by striking sections 802 and 803 (12 U.S.C. 

2 2901, 2902) and inserting the following: 

3 ‘‘SEC. 802. FINDINGS AND PURPOSE. 

4 ‘‘(a) FINDINGS.—Congress finds that— 

5 ‘‘(1) regulated financial institutions are re6 quired by law to demonstrate that they serve the 

7 convenience and needs of the communities in which 

8 they are chartered or do business, in particular low9 and moderate-income communities; 

10 ‘‘(2) the convenience and needs of communities 

11 include the need for credit services, deposit services, 

12 transaction services, other financial services, and 

13 community development loans and investments; and 

14 ‘‘(3) regulated financial institutions have a con15 tinuing and affirmative obligation to meet the credit 

16 or other financial needs of all the local communities 

17 in which they are chartered or do business, including 

18 communities in which— 

19 ‘‘(A) the institutions make loans and do 

20 not accept deposits; or 

21 ‘‘(B) the institutions accept deposits but 

22 do not make loans. 

23 ‘‘(b) PURPOSE.—It is the purpose of this title to re24 quire each appropriate Federal financial supervisory agen25 cy to use its authority when examining regulated financial 


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1 institutions to ensure that those institutions meet the 

2 credit and other financial needs of the local communities 

3 in which they are chartered or do business consistent with 

4 the safe and sound operation of those institutions. 

5 ‘‘SEC. 803. DEFINITIONS. 

6 ‘‘In this title: 

7 ‘‘(1) APPLICATION FOR A DEPOSIT FACILITY.— 

8 The term ‘application for a deposit facility’ means 

9 an application to the appropriate Federal financial 

10 supervisory agency otherwise required under Federal 

11 law or regulations thereunder for— 

12 ‘‘(A) a charter for a national bank or Fed13 eral savings and loan association; 

14 ‘‘(B) deposit insurance in connection with 

15 a newly chartered State bank, savings bank, 

16 savings and loan association, or similar institu17 tion; 

18 ‘‘(C) the establishment of a domestic 

19 branch or other facility with the ability to ac20 cept deposits of a regulated financial institu21 tion; 

22 ‘‘(D) the relocation of the home office or a 

23 branch office of a regulated financial institu24 tion; 


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1 ‘‘(E) the merger or consolidation with, the 

2 acquisition of the assets of, or the assumption 

3 of the liabilities of a regulated financial institu4 tion requiring approval under section 18(c) of 

5 the Federal Deposit Insurance Act (12 U.S.C. 

6 1828(c)); or 

7 ‘‘(F) the acquisition of shares in, or the as8 sets of, a regulated financial institution requir9 ing approval under section 3 of the Bank Hold10 ing Company Act of 1956 (12 U.S.C. 1842). 

11 ‘‘(2) APPROPRIATE FEDERAL BANKING AGEN12 CY.—The term ‘appropriate Federal banking agency’ 

13 has the meaning given the term in section 3 of the 

14 Federal Deposit Insurance Act (12 U.S.C. 1813). 

15 ‘‘(3) APPROPRIATE FEDERAL FINANCIAL SU16 PERVISORY AGENCY.—The term ‘appropriate Fed17 eral financial supervisory agency’ means— 

18 ‘‘(A) the appropriate Federal banking 

19 agency with respect to depository institutions 

20 and depository institution holding companies; 

21 and 

22 ‘‘(B) the Bureau of Consumer Financial 

23 Protection with respect to any covered person 

24 supervised by the Bureau pursuant to section 

25 1024 of the Dodd-Frank Wall Street Reform 


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1 and Consumer Protection Act (12 U.S.C. 

2 5514). 

3 ‘‘(4) ASSESSMENT AREA.—The term ‘assess4 ment area’ means, with respect to a regulated finan5 cial institution, each community, including a State, 

6 metropolitan area, or urban or rural county, in 

7 which the institution— 

8 ‘‘(A) maintains deposit-taking branches, 

9 automated teller machines, or retail offices; 

10 ‘‘(B) is represented by an agent; or 

11 ‘‘(C) issues a significant number of loans 

12 or other products relative to the total number 

13 of loans or other products made by the institu14 tion or relative to the total number of loans or 

15 other products offered by the private sector 

16 market. 

17 ‘‘(5) CLIMATE RESILIENCY AND DISASTER MITI18 GATION.—The term ‘climate resiliency and disaster 

19 mitigation’ means activities that— 

20 ‘‘(A) assist individuals and communities to 

21 prepare for, adapt to, and withstand climate-re22 lated risks, natural disasters, or weather-related 

23 disasters; 

24 ‘‘(B) benefit or serve residents of low- to 

25 moderate-income census tracts or climate vulVerDate Sep 11 2014 19:41 Sep 10, 2024 Jkt 049200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H9245.IH H9245

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1 nerable communities and do not directly result 

2 in forced or involuntary relocation of those resi3 dents; and 

4 ‘‘(C) are done in conjunction with— 

5 ‘‘(i) a plan, program or initiative of a 

6 Federal, State, local or Tribal government; 

7 or 

8 ‘‘(ii) a mission-driven nonprofit orga9 nization that is focused on benefiting or 

10 serving targeted census tracts or climate 

11 vulnerable communities. 

12 ‘‘(6) CLIMATE VULNERABLE COMMUNITIES.— 

13 The term ‘climate vulnerable communities’ means 

14 communities experiencing heightened risk and in15 creased sensitivity to climate change with less capac16 ity and fewer resources to cope with, adapt to, or re17 cover from climate impacts, as determined by the 

18 appropriate Federal financial supervisory agencies 

19 using tools developed by Federal agencies that iden20 tify census tracts as disadvantaged based in part on 

21 environmental factors, including the climate and eco22 nomic justice screening tool developed by the Council 

23 on Environmental Quality. 

24 ‘‘(7) COMMUNITY BENEFITS PLAN.—The term 

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1 vides measurable goals for future amounts of safe 

2 and sound loans, investments, services, and other fi3 nancial products for low- and moderate-income com4 munities and other distressed or underserved com5 munities. 

6 ‘‘(8) COMMUNITY DEVELOPMENT.—The term 

7 ‘community development’ includes— 

8 ‘‘(A) affordable housing for low- or mod9 erate-income individuals and avoidance of pat10 terns of lending resulting in the loss of afford11 able housing units and housing for low- and 

12 moderate-income individuals in high-opportunity 

13 areas; 

14 ‘‘(B) community development services, in15 cluding counseling and successful mortgage or 

16 loan modifications of delinquent loans; 

17 ‘‘(C) activities that promote integration; 

18 ‘‘(D) activities that promote economic de19 velopment by financing small businesses or 

20 farms that meet the size eligibility requirements 

21 of the development company or small business 

22 investment company programs under section 

23 121.301 of title 13, Code of Federal Regula24 tions, or any successor regulation, with an emVerDate Sep 11 2014 19:41 Sep 10, 2024 Jkt 049200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H9245.IH H9245

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1 phasis on small businesses that have gross an2 nual revenues of not more than $1,000,000; 

3 ‘‘(E) activities that revitalize or stabilize— 

4 ‘‘(i) low- or moderate-income geog5 raphies; 

6 ‘‘(ii) designated disaster areas; 

7 ‘‘(iii) distressed or underserved non8 metropolitan middle-income geographies 

9 designated by the Federal Financial Insti10 tutions Examination Council, based on— 

11 ‘‘(I) rates of poverty, unemploy12 ment, and population loss; or 

13 ‘‘(II) population size, density, 

14 and dispersion, if those activities help 

15 to meet essential community needs, 

16 including the needs of low- and mod17 erate-income individuals; or 

18 ‘‘(iv) other distressed or underserved 

19 communities; 

20 ‘‘(F) activities that promote physical, envi21 ronmental, and sensory accessibility in housing 

22 stock that is integrated into the community; 

23 and 

24 ‘‘(G) other activities that promote the ob25 jectives of this title, as determined by the apVerDate Sep 11 2014 19:41 Sep 10, 2024 Jkt 049200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H9245.IH H9245

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1 propriate Federal financial supervisory agen2 cies. 

3 ‘‘(9) DEPOSITORY INSTITUTION; DEPOSITORY

4 INSTITUTION HOLDING COMPANY; INSURED DEPOSI5 TORY INSTITUTION.—The terms ‘depository institu6 tion’, ‘depository institution holding company’, and 

7 ‘insured depository institution’ have the meanings 

8 given those terms in section 3 of the Federal De9 posit Insurance Act (12 U.S.C. 1813). 

10 ‘‘(10) ENTIRE COMMUNITY.—The term ‘entire 

11 community’ means— 

12 ‘‘(A) all of the assessment areas of a regu13 lated financial institution; and 

14 ‘‘(B) areas outside of assessment areas de15 scribed in subparagraph (A) in which a regu16 lated financial institution has made loans or re17 ceived deposits. 

18 ‘‘(11) ENUMERATED CONSUMER LAWS.—The 

19 term ‘enumerated consumer laws’ has the meaning 

20 given the term in section 1002 of the Consumer Fi21 nancial Protection Act of 2010 (12 U.S.C. 5481). 

22 ‘‘(12) FOSSIL FUEL.—The term ‘fossil fuel’ 

23 means coal, petroleum, methane gas (often referred 

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1 leum, or methane gas that is used for fuel directly 

2 or indirectly, such as for generating electricity. 

3 ‘‘(13) FOSSIL FUEL COMPANY.—The term ‘fos4 sil fuel company’ means any company that— 

5 ‘‘(A) is among the 200 companies with the 

6 largest fossil fuel reserves in the world; 

7 ‘‘(B) is among the 30 largest public com8 pany owners in the world of coal-fired power 

9 plants; 

10 ‘‘(C) has as its core business— 

11 ‘‘(i) the construction or operation of 

12 fossil fuel infrastructure; or 

13 ‘‘(ii) the exploration, extraction, refin14 ing, processing or distribution of fossil 

15 fuels; or 

16 ‘‘(D) receives more than 50 percent of its 

17 gross revenue from companies that meet the 

18 definition under subparagraph (A), (B), or (C). 

19 ‘‘(14) FOSSIL FUEL EXPANSION.—The term 

20 ‘fossil fuel expansion’ means financing for new fossil 

21 fuel infrastructure projects, including financing of 

22 exploration activities, that would— 

23 ‘‘(A) increase greenhouse gas emissions; 

24 and 


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1 ‘‘(B) increase the difficulty of achieving 

2 Federal, State, or local carbon emission reduc3 tion goals. 

4 ‘‘(15) FOSSIL FUEL INFRASTRUCTURE.—The 

5 term ‘fossil fuel infrastructure’ means oil or gas 

6 wells, oil or gas pipelines and refineries, oil, coal or 

7 gas-fired power plants, oil and gas storage tanks, 

8 fossil fuel export terminals, and any other infra9 structure used exclusively for fossil fuels, including 

10 facilities with carbon capture, utilization, and stor11 age. 

12 ‘‘(16) GEOGRAPHY.—The term ‘geography’ 

13 means a census tract delineated by the Bureau of 

14 the Census in the most recent decennial census. 

15 ‘‘(17) INTERMEDIATE BANK.—The term ‘inter16 mediate bank’ is a depository institution with assets 

17 between $391,000,000 and $1,564,000,000, as ad18 justed annually for purposes of an examination 

19 under section 804. 

20 ‘‘(18) LARGE BANK.— The term ‘large bank’ is 

21 a depository institution with assets of not less than 

22 $1,564,000,000, as adjusted annually for purposes 

23 of an examination under section 804. 

24 ‘‘(19) OTHER DISTRESSED OR UNDERSERVED

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1 served community’ means an area or census tract 

2 that, according to a periodic review and data anal3 ysis by the appropriate Federal financial supervisory 

4 agencies on an interagency basis through the Fed5 eral Financial Institutions Examination Council of 

6 certain metrics, such as loans per households or 

7 small business, is experiencing economic hardship or 

8 is underserved by financial institutions. 

9 ‘‘(20) OTHER UNDERSERVED POPULATION.— 

10 The term ‘other underserved population’ means a 

11 population that is experiencing ongoing effects of 

12 discrimination or is relatively underserved by finan13 cial institutions, as measured by loans per house14 holds or other similar metrics. 

15 ‘‘(21) REGULATED FINANCIAL INSTITUTION.— 

16 The term ‘regulated financial institution’ means— 

17 ‘‘(A) an insured depository institution; 

18 ‘‘(B) a depository institution holding com19 pany; and 

20 ‘‘(C) a U.S. nonbank mortgage originator. 

21 ‘‘(22) SMALL BANK.—The term ‘small bank’ is 

22 a depository institution with assets of less than 

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1 stitutions are subject to an examination under sec2 tion 804. 

3 ‘‘(23) U.S. NONBANK MORTGAGE ORIGI4 NATOR.—The term ‘U.S. nonbank mortgage origi5 nator’ means a covered person subject to section 

6 1024 of the Dodd-Frank Wall Street Reform and 

7 Consumer Protection Act (12 U.S.C. 5514) that of8 fers or provides— 

9 ‘‘(A) origination of loans secured by real 

10 estate for use by consumers primarily for per11 sonal, family, or household purposes; or 

12 ‘‘(B) loan modification or foreclosure relief 

13 services in connection with a loan described in 

14 subparagraph (A).’’; 

15 (2) in section 804 (12 U.S.C. 2903)— 

16 (A) by redesignating subsections (c) and 

17 (d) as subsections (f) and (g), respectively; 

18 (B) by striking subsections (a) and (b) and 

19 inserting the following: 

20 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD21 ING COMPANIES.— 

22 ‘‘(1) IN GENERAL.—In connection with its ex23 amination of a regulated financial institution other 

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1 propriate Federal financial supervisory agency shall 

2 perform the following: 

3 ‘‘(A) Assess the record of the institution in 

4 meeting the credit and other financial needs of 

5 its entire community, in particular low- and 

6 moderate-income people and communities, and 

7 other distressed or underserved communities, 

8 and other underserved populations consistent 

9 with the safe and sound operation of the insti10 tution. 

11 ‘‘(B) Assess the effectiveness of the fol12 lowing activities in meeting the credit and other 

13 financial needs of the assessment areas of the 

14 institution, consistent with the safe and sound 

15 operation of the institution: 

16 ‘‘(i) Retail lending, including home, 

17 small business, consumer, automobile, and 

18 other lending and financial products, that 

19 responds to credit needs or other financial 

20 needs. 

21 ‘‘(ii) Community development lending 

22 and investments, which may include a con23 sideration of— 

24 ‘‘(I) the origination of loans and 

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1 sist existing low- and moderate-income 

2 residents to remain in affordable 

3 housing in their community; and 

4 ‘‘(II) the origination of loans by 

5 the institution that result in the con6 struction, rehabilitation, or preserva7 tion of affordable housing units. 

8 ‘‘(iii) Community development finance 

9 tests or similar tests developed by the Fed10 eral bank agencies shall include separate 

11 quantitative measures for community de12 velopment investments. The evaluation of 

13 investments shall positively or negatively 

14 affect test scores depending on bank per15 formance, in community development fi16 nance tests or similar tests. 

17 ‘‘(iv) Retail financial services and 

18 community development services. 

19 ‘‘(v) Evaluation of the responsiveness, 

20 affordability, and sustainability of retail fi21 nancial services including credit and de22 posit products shall positively or negatively 

23 affect tests scores, depending on bank per24 formance, in the retail products and serv25 ice test or similar tests. 


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1 ‘‘(vi) Retail lending assessment areas, 

2 as defined by the regulations in part 25 of 

3 title 12, Code of Federal Regulations, or 

4 any successor regulations, shall be estab5 lished for large banks and intermediate 

6 banks if not more than 90 percent of the 

7 retail loans of the bank are in facility8 based assessment areas containing their 

9 branches and deposit-taking automated 

10 teller machines. Large banks and inter11 mediate bank evaluations shall also exam12 ine lending outside of retail lending assess13 ment areas and facility-based assessment 

14 areas. Evaluations of these loans shall be 

15 considered when assigning an institution 

16 level rating to the bank. 

17 ‘‘(C) With respect to its evaluation of an 

18 application for a deposit facility by the institu19 tion— 

20 ‘‘(i) consider the record described in 

21 subparagraph (A), the effectiveness of the 

22 activities described in subparagraph (B), 

23 the overall rating of the institution under 

24 this section, and any improvement plans 

25 submitted pursuant to this section; 


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1 ‘‘(ii) provide an opportunity for public 

2 comment for a period of not less than 60 

3 days; 

4 ‘‘(iii) consider changes in the commu5 nity reinvestment performance of the insti6 tution since the most recent rating under 

7 this section by the appropriate Federal fi8 nancial supervisory agency; and 

9 ‘‘(iv) require— 

10 ‘‘(I) a demonstration of public 

11 benefit, including a community bene12 fits plan with measurable goals re13 garding increasing responsible lending 

14 and other financial products that is 

15 commensurate with the ability of the 

16 institution to accomplish those goals; 

17 ‘‘(II) that the institution consult 

18 with community-based organizations 

19 and other community stakeholders in 

20 developing the community benefits 

21 plan; and 

22 ‘‘(III) a public hearing for any 

23 institution that has a received a ‘need24 to-improve’ or ‘low satisfactory’ grade 


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1 in any individual assessment area dur2 ing the most recent examination. 

3 ‘‘(2) CONSIDERATION OF LENDING IN PART4 NERSHIP WITH NON-DEPOSITORY LENDERS.— 

5 ‘‘(A) IN GENERAL.—As part of assessing a 

6 financial institution under paragraph (1), the 

7 appropriate Federal financial supervisory agen8 cy shall evaluate the performance of the finan9 cial institution in originating loans for small 

10 farms, consumer loans (including residential 

11 mortgages, unsecured installment loans, ad12 vances, and lines of credit), and loans for small 

13 businesses (including unsecured installment 

14 loans, advances, and lines of credit) in partner15 ship with 1 or more non-depository lenders. 

16 ‘‘(B) AFFORDABILITY AND SUSTAIN17 ABILITY.—In making the evaluation described 

18 in subparagraph (A), the appropriate Federal 

19 financial supervisory agency shall consider the 

20 affordability and sustainability of the loan origi21 nations made in partnership with 1 or more 

22 non-depository lenders. 

23 ‘‘(C) DEFINITIONS.—In this paragraph: 

24 ‘‘(i) NON-DEPOSITORY LENDER.—The 

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1 er that is not an insured depository institu2 tion. 

3 ‘‘(ii) SMALL BUSINESS; SMALL

4 FARM.—The terms ‘small business’ and 

5 ‘small farm’ have the meanings given those 

6 terms under the regulations promulgated 

7 by the Bureau implementing the amend8 ments made by section 1071 of the Dodd 

9 Frank Wall Street Reform and Consumer 

10 Protection Act of 2010 (Public Law 111– 

11 203; 124 Stat. 2056) under part 1002 of 

12 title 12, Code of Federal Regulations, or 

13 any successor regulation. 

14 ‘‘(3) DEDUCTIONS FOR FOSSIL EXPANSION.— 

15 ‘‘(A) IN GENERAL.—As part of assessing a 

16 financial institution under paragraph (1), the 

17 appropriate Federal financial supervisory agen18 cy shall— 

19 ‘‘(i) determine the total dollar amount 

20 of loans and investments to fossil fuel com21 panies for the purposes of fossil fuel ex22 pansion that were originated or held by the 

23 financial institution during the period cov24 ered by an examination under section 804; 

25 and 


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1 ‘‘(ii) deduct not more than that total 

2 dollar amount from the reported commu3 nity development loans and investments of 

4 the financial institution, both in the aggre5 gate and at the local market, or assess6 ment area, level. 

7 ‘‘(B) ACTIVITIES.—The deduction de8 scribed in subparagraph (A)(ii) may only be off9 set by financing by the institution of climate re10 siliency and disaster mitigation activities spe11 cifically targeted to underserved communities, 

12 such as— 

13 ‘‘(i) the development of climate resil14 ient affordable housing, schools, and small 

15 businesses (as defined in paragraph 

16 (2)(C)); 

17 ‘‘(ii) clean electricity projects and 

18 microgrids; 

19 ‘‘(iii) nature-based protective infra20 structure; 

21 ‘‘(iv) building decarbonization, which 

22 includes holistic home weatherization and 

23 health interventions; 

24 ‘‘(v) lending to green small businesses 

25 and companies with legitimate public 


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1 decarbonization transition plans, strate2 gies, and targets; 

3 ‘‘(vi) electric public transit and elec4 tric vehicle charging infrastructure; 

5 ‘‘(vii) investments in weatherization 

6 and climate resilience for local businesses; 

7 ‘‘(viii) operational and technical sup8 port and capacity building for environ9 mental and climate justice organizations, 

10 including support for community groups 

11 active in environmental testing and train12 ing of community members to identify cli13 mate or environmental risks and opportu14 nities in their communities; and 

15 ‘‘(ix) workforce development related to 

16 the transition away from fossil fuels, in17 cluding activities to train workers on skills 

18 needed to participate in carbon-pollution19 free energy sectors. 

20 ‘‘(4) PENALTIES FOR SUSTAINED FAILING PER21 FORMANCE.—A regulated financial institution other 

22 than a U.S. nonbank mortgage originator that re23 ceives overall performance ratings under this section 

24 of ‘needs to improve’ or ‘substantial noncompliance’ 

25 for 2 consecutive examinations shall be subject to 


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1 the following penalties, as deemed applicable by the 

2 appropriate Federal financial supervisory agency: 

3 ‘‘(A) Restrictions on the institution’s 

4 growth (overall or in discrete areas), business 

5 activities, or payment of dividends, including re6 strictions on ability to sell loans originated by 

7 the institution to enterprises, as defined in sec8 tion 1303 of the Federal Housing Enterprises 

9 Financial Safety and Soundness Act of 1992 

10 (12 U.S.C. 4502). 

11 ‘‘(B) Recommendations to appropriate 

12 State agencies that State mortgage licenses be 

13 suspended or revoked with a statement of facts 

14 covering the justification for the recommended 

15 suspension or revocation. 

16 ‘‘(C) Requiring the institution to simplify 

17 or reduce its operations, including that the in18 stitution reduce its asset size, divest subsidi19 aries or business lines, or exit from 1 or more 

20 markets of operation. 

21 ‘‘(D) Recovery, or claw back, of portions of 

22 executive compensation received during consecu23 tive evaluation periods under this section of 

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1 formance rating of ‘needs to improve’ or ‘sub2 stantial noncompliance’. 

3 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATOR.— 

4 ‘‘(1) IN GENERAL.—In connection with its ex5 amination of a U.S. nonbank mortgage originator, 

6 the appropriate Federal financial supervisory agency 

7 shall perform the following: 

8 ‘‘(A) Assess the record of the U.S. 

9 nonbank mortgage originator in meeting the 

10 credit or other financial needs of its entire com11 munity, in particular low-income and moderate12 income people and communities and other dis13 tressed or underserved communities and other 

14 underserved populations, consistent with the 

15 safe and sound operation of the U.S. nonbank 

16 mortgage originator. 

17 ‘‘(B) Assess, as appropriate, the following 

18 activities in the assessment areas of the U.S. 

19 nonbank mortgage originator: 

20 ‘‘(i) Retail lending, including home 

21 loans. 

22 ‘‘(ii) Community development services. 

23 ‘‘(iii) Community development lending 

24 and investments, which may include a con25 sideration of— 


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1 ‘‘(I) the origination of loans and 

2 other efforts by the institution to as3 sist existing low- and moderate-income 

4 residents to remain in affordable 

5 housing in their community; 

6 ‘‘(II) the origination of loans by 

7 the institution that result in the con8 struction, rehabilitation or preserva9 tion of affordable housing units; and 

10 ‘‘(III) investments in, grants to, 

11 or loans to community development fi12 nancial institutions (as defined in sec13 tion 103 of the Community Develop14 ment Banking and Financial Institu15 tions Act of 1994 (12 U.S.C. 4702)), 

16 community development corporations 

17 (as defined in section 613 of the Com18 munity Economic Development Act of 

19 1981 (42 U.S.C. 9802)), and other 

20 nonprofit organizations serving the 

21 housing and development needs of the 

22 community. 

23 ‘‘(iv) Retail lending assessment areas, 

24 as defined by the regulations in part 25 of 

25 title 12, Code of Federal Regulations, or 


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1 any successor regulation, shall be estab2 lished if not more than 90 percent of the 

3 retail loans of the U.S. nonbank originator 

4 are in facility-based assessment areas con5 taining offices or agents. The evaluations 

6 shall also examine lending outside of retail 

7 lending assessment areas and facility-based 

8 assessment areas. Evaluations of these 

9 loans shall be considered when assigning 

10 an institution level rating to the U.S. 

11 nonbank mortgage originator. 

12 ‘‘(C) With respect to its evaluation of an 

13 application for a deposit facility by the U.S. 

14 nonbank mortgage originator— 

15 ‘‘(i) consider the record described in 

16 subparagraph (A) the overall rating of the 

17 U.S. nonbank mortgage originator under 

18 this section, and any improvement plans 

19 submitted pursuant to this section; 

20 ‘‘(ii) provide an opportunity for public 

21 comment for a period of not less than 60 

22 days; 

23 ‘‘(iii) consider changes in the commu24 nity reinvestment performance of the U.S. 

25 nonbank mortgage originator since the 


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1 most recent rating under this section by 

2 the appropriate Federal financial super3 visory agency; and 

4 ‘‘(iv) require— 

5 ‘‘(I) a demonstration that grant6 ing the application for a deposit facil7 ity is in the public interest, which 

8 shall include a submission of a com9 munity benefits plan, which shall be 

10 commensurate with the ability of the 

11 institution to accomplish the plan, by 

12 the U.S. nonbank mortgage originator 

13 to the appropriate Federal financial 

14 supervisory agency; 

15 ‘‘(II) that the U.S. nonbank 

16 mortgage originator consult with com17 munity-based organizations and other 

18 community stakeholders in developing 

19 the community benefits plan; and 

20 ‘‘(III) a public hearing for any 

21 U.S. nonbank mortgage originator 

22 that has a received a ‘need-to-im23 prove’ or ‘low satisfactory’ grade in 

24 any individual assessment area during 

25 the most recent examination. 


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1 ‘‘(2) PENALTIES AND FEES.—The appropriate 

2 Federal financial supervisory agency shall have the 

3 same authority to assess penalties and fees under 

4 subsection (a)(4) for U.S. nonbank mortgage origi5 nator as is the case for regulated financial institu6 tions described in subsection (a). 

7 ‘‘(3) AUTHORITY TO ADJUST EXAMINATION AND

8 SUPERVISORY FEES.— The appropriate Federal fi9 nancial supervisory agencies shall have the authority 

10 to adjust the dollar amount of examination and su11 pervisory fees, based in part, on the rating of insti12 tutions under this section. 

13 ‘‘(c) REQUIREMENTS.— 

14 ‘‘(1) IN GENERAL.—In connection with its ex15 amination of a regulated financial institution under 

16 subsection (a) or (b), the appropriate Federal finan17 cial supervisory agency shall— 

18 ‘‘(A) consider public comments received by 

19 the appropriate Federal financial supervisory 

20 agency regarding the record of the institution in 

21 meeting the credit or other financial needs of 

22 its entire community, including low- and mod23 erate-income communities, and hold not less 

24 than 1 public hearing to receive comments for 


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1 large banks with assets of not less than 

2 $50,000,000,000; and 

3 ‘‘(B) require— 

4 ‘‘(i) an improvement plan for an insti5 tution that receives a rating of ‘low satis6 factory’ or lower on the written evaluation 

7 of the institution, or such a rating in any 

8 individual assessment area; and 

9 ‘‘(ii) the improvement plan described 

10 in clause (i) to result in the reasonable 

11 likelihood that the institution will obtain a 

12 rating of at least ‘high satisfactory’ in 

13 meeting community credit or other finan14 cial needs in the relevant measure on the 

15 next examination. 

16 ‘‘(2) IMPROVEMENT PLAN.— 

17 ‘‘(A) IN GENERAL.—A regulated financial 

18 institution that is required to submit an im19 provement plan required under paragraph 

20 (1)(B) shall submit the plan in writing to the 

21 appropriate Federal financial supervisory agen22 cy not later than 90 days after receiving notice 

23 that the regulated financial institution is re24 quired to submit the plan. 


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1 ‘‘(B) PUBLIC COMMENT.—Upon receipt of 

2 an improvement plan of a regulated financial 

3 institution required under paragraph (1)(B), 

4 the appropriate Federal financial supervisory 

5 agency shall— 

6 ‘‘(i) make the plan available to the 

7 public for review and comment for a period 

8 of not less than 60 days; and 

9 ‘‘(ii) require the regulated financial 

10 institution to revise, as appropriate, the 

11 improvement plan in response to the public 

12 comments received under the public review 

13 and comment period described in clause (i) 

14 and submit the plan to the appropriate 

15 Federal financial supervisory agency not 

16 later than 60 days after the end of that pe17 riod. 

18 ‘‘(3) EXAMINATION OF CERTAIN REGULATED

19 FINANCIAL INSTITUTIONS.—In the case of a regu20 lated financial institution whose lending or other 

21 business is not clustered in geographical areas and 

22 is thinly dispersed across the country, the institution 

23 shall— 

24 ‘‘(A) be evaluated under subsection (a) or 

25 (b), as applicable— 


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1 ‘‘(i) by considering the effectiveness of 

2 the institution in serving customers or bor3 rowers, with a special emphasis on low4 and moderate-income individuals and other 

5 underserved populations across the country 

6 regardless of where the individuals reside; 

7 and 

8 ‘‘(ii) based on objective thresholds de9 veloped by the appropriate Federal finan10 cial supervisory agencies to clarify when 

11 lending or other business is dispersed 

12 across the country and not clustered in 

13 distinct geographical areas, which may in14 clude low levels of lending or other finan15 cial products across States or other areas; 

16 and 

17 ‘‘(B) meet the needs of other distressed or 

18 underserved communities. 

19 ‘‘(d) CONSIDERATION.—Remediation of consumers 

20 pursuant to an order by a court or administrative body 

21 or a settlement with a government agency or a private 

22 party may not be considered in an assessment conducted 

23 under subsection (a)(2) or (b)(2). 

24 ‘‘(e) RULE OF CONSTRUCTION.—An evaluation of a 

25 bank holding company under this section shall incorporate 


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1 evaluations of subsidiary regulated financial institutions 

2 made by the appropriate Federal financial supervisory 

3 agency of each subsidiary, if applicable.’’; 

4 (C) in subsection (f), as so redesignated— 

5 (i) by striking paragraph (2); 

6 (ii) by redesignating paragraph (3) as 

7 paragraph (2); and 

8 (iii) in paragraph (2), as so redesig9 nated, by striking subparagraph (C); and 

10 (D) in subsection (g), as so redesignated, 

11 by striking ‘‘subsection (a)’’ and inserting ‘‘sub12 sections (a) and (b)’’; 

13 (3) in section 807 (12 U.S.C. 2906)— 

14 (A) in subsection (a)— 

15 (i) by striking ‘‘an insured depository 

16 institution’’ and inserting ‘‘a regulated fi17 nancial institution’’; and 

18 (ii) by inserting ‘‘or financial’’ after 

19 ‘‘credit’’; 

20 (B) in subsection (b)— 

21 (i) in paragraph (1)— 

22 (I) in subparagraph (A)— 

23 (aa) in clause (ii), by strik24 ing ‘‘and’’ at the end; 


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1 (bb) by redesignating clause 

2 (iii) as clause (iv); and 

3 (cc) by inserting after clause 

4 (ii) the following: 

5 ‘‘(iii) disclose whether the institution en6 gaged in acts or practices that the Bureau of 

7 Consumer Financial Protection has determined, 

8 and has publicly disclosed, violate the enumer9 ated consumer laws; and’’; and 

10 (II) by striking subparagraph (B) 

11 and inserting the following: 

12 ‘‘(B) EVALUATION ON AN ASSESSMENT AREA

13 BASIS.—The information required under subsections 

14 (a) and (b) of section 804 shall be presented sepa15 rately for each assessment area. 

16 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA17 TIONS OF ENUMERATED CONSUMER LAWS.—If a 

18 regulated financial institution has engaged in acts or 

19 practices that the appropriate Federal financial su20 pervisory agency has determined to be unfair, decep21 tive, or abusive or acts or practices that violate enu22 merated consumer laws intended to ensure the fair, 

23 equitable, and nondiscriminatory access to credit for 

24 individuals and communities that are enforced by 

25 the Bureau of Consumer Financial Protection or 


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1 other Federal or State agencies, the written evalua2 tion shall be negatively influenced in a manner com3 mensurate with the extent of the harm suffered by 

4 those individuals and communities.’’; 

5 (ii) in paragraph (2)— 

6 (I) by striking subparagraphs 

7 (A), (B), (C), and (D) and inserting 

8 the following: 

9 ‘‘(A) ‘Outstanding record of meeting com10 munity credit or other financial needs’. 

11 ‘‘(B) ‘High Satisfactory record of meeting 

12 community credit or other financial needs’. 

13 ‘‘(C) ‘Low Satisfactory record of meeting 

14 community credit or other financial needs’. 

15 ‘‘(D) ‘Needs to improve record of meeting 

16 community credit or other financial needs’. 

17 ‘‘(E) ‘Substantial noncompliance in meet18 ing community credit or other financial 

19 needs’.’’; and 

20 (iii) by inserting after the flush text 

21 following paragraph (2) the following: 

22 ‘‘(3) ADDITIONAL AUTHORITY.—The appro23 priate Federal financial supervisory agencies may— 


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1 ‘‘(A) alter the ratings under this sub2 section to change or include additional ratings 

3 for the overall ratings and subtest ratings; and 

4 ‘‘(B) develop an accompanying point sys5 tem that includes ranges for each rating cat6 egory under paragraph (2).’’; 

7 (C) by redesignating subsection (e) as sub8 section (f); and 

9 (D) by inserting after subsection (d) the 

10 following: 

11 ‘‘(e) APPEALS OF RATING.—If a regulated financial 

12 institution appeals the assigned rating under this section, 

13 the appropriate Federal financial supervisory agency 

14 shall— 

15 ‘‘(1) post a public notice of the appeal on the 

16 part of the website of the appropriate Federal finan17 cial supervisory agency that contains information on 

18 this title; and 

19 ‘‘(2) provide an opportunity for public comment 

20 on the appeal.’’; 

21 (4) in section 806 (12 U.S.C. 2905)— 

22 (A) by striking ‘‘Regulations’’ and insert23 ing the following: 

24 ‘‘(a) IN GENERAL.—Regulations’’; 


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1 (B) in subsection (a), as so designated, by 

2 striking ‘‘companies,,’’ and inserting ‘‘compa3 nies,’’; and 

4 (C) by adding at the end the following: 

5 ‘‘(b) PERIODIC REVIEW.—Not later than 5 years 

6 after the date of enactment of this subsection and every 

7 5 years thereafter, the appropriate Federal financial su8 pervisory agencies shall— 

9 ‘‘(1) review the regulations promulgated to 

10 carry out this title; and 

11 ‘‘(2) report to Congress any recommendations 

12 for updates to the regulations and this title, which 

13 may include consideration of— 

14 ‘‘(A) data collection under this title; 

15 ‘‘(B) the rigor of evaluations under this 

16 title; 

17 ‘‘(C) the assessment area coverage of loans 

18 and deposits; and 

19 ‘‘(D) the extent to which the provisions of 

20 this title are reducing disparities in access to 

21 credit and capital by income and race.’’; and 

22 (5) by adding at the end the following: 

23 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE24 MENTS. 

25 ‘‘(a) DATA COLLECTION.— 


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1 ‘‘(1) CONSUMER LOANS.— 

2 ‘‘(A) IN GENERAL.—Each regulated finan3 cial institution shall collect and maintain in ma4 chine readable form, as prescribed by the ap5 propriate Federal financial supervisory agency, 

6 data for consumer loans originated or pur7 chased by the regulated financial institution, in8 cluding motor vehicle loans, credit cards, lines 

9 of credit, and other secured or unsecured loans. 

10 The regulated financial institution shall main11 tain data separately for each category of con12 sumer loan, including the following for each 

13 loan: 

14 ‘‘(i) A unique number or alpha-nu15 meric symbol that can be used to identify 

16 the relevant loan. 

17 ‘‘(ii) The loan amount at origination 

18 or purchase. 

19 ‘‘(iii) The loan location. 

20 ‘‘(iv) The gross annual income of the 

21 borrower that the regulated financial insti22 tution considered in making its credit deci23 sion. 

24 ‘‘(B) EXEMPTIONS.—The appropriate Fed25 eral financial supervisory agencies may exempt 


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1 classes of regulated financial institutions from 

2 the requirements under subparagraph (A) due 

3 to low levels of consumer lending or other fac4 tors. 

5 ‘‘(2) COMMUNITY DEVELOPMENT LOANS AND

6 INVESTMENTS.— 

7 ‘‘(A) COLLECTION AND MAINTENANCE OF

8 DATA.—Each regulated financial institution 

9 shall collect and maintain in machine readable 

10 form, as prescribed by the appropriate Federal 

11 financial supervisory agency, data on the cat12 egories of community development lending and 

13 investments, including data regarding financing 

14 affordable housing, small business development, 

15 and economic development. 

16 ‘‘(B) PUBLIC DISSEMINATION.—Each reg17 ulated financial institution and the appropriate 

18 Federal financial supervisory agencies shall— 

19 ‘‘(i) publicly disseminate the data de20 scribed in subparagraph (A) on a county 

21 level and for categories of census tracts in22 cluding low- and moderate-income census 

23 tracts or other distressed and underserved 

24 census tracts; and 


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1 ‘‘(ii) consider disseminating the data 

2 described in subparagraph (A) by indi3 vidual census tracts in addition to the cat4 egories described in clause (i). 

5 ‘‘(3) ASSESSMENT AREA DATA.— 

6 ‘‘(A) IN GENERAL.—Each regulated finan7 cial institution shall collect and report to the 

8 appropriate Federal financial supervisory agen9 cy by March 1 of each year a list for each as10 sessment area showing the geographies within 

11 the area. 

12 ‘‘(B) PUBLICATION.—The appropriate 

13 Federal financial supervisory agencies shall 

14 make the list of assessment areas reported by 

15 each regulated financial institution under sub16 paragraph (A) publicly available on the part of 

17 the website of the appropriate Federal financial 

18 supervisory agency that contains information on 

19 this title. 

20 ‘‘(4) DEPOSITS.—The appropriate Federal fi21 nancial supervisory agencies shall— 

22 ‘‘(A) collect data from regulated financial 

23 institutions that reflects— 

24 ‘‘(i) the number of customers of those 

25 institutions that reside in categories of 


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1 census tracts including low- and moderate2 income census tracts or other distressed 

3 and underserved census tracts and the dol4 lar amount of deposits of those customers; 

5 and 

6 ‘‘(ii) the number of small businesses 

7 that are located in the census tract cat8 egories described in clause (i); and 

9 ‘‘(B) consider the dissemination of the de10 posit data collected under subparagraph (A) by 

11 individual census tracts in addition to the cat12 egories described in that subparagraph. 

13 ‘‘(b) AGGREGATE DISCLOSURE STATEMENTS.— 

14 ‘‘(1) IN GENERAL.—Each appropriate Federal 

15 financial supervisory agency shall prepare annually, 

16 for each assessment area, a disclosure statement of 

17 home, small business, small farm, and consumer 

18 lending for each regulated financial institution sub19 ject to reporting under this section and an aggre20 gated statement for all reporting institutions com21 bined, which shall indicate, for each assessment 

22 area, the number and amount of all small business, 

23 small farm, and consumer loans originated or pur24 chased sorted by income level of borrowers, race and 


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1 ethnicity of borrowers, revenue size of small business 

2 and farms, and categories of census tracts. 

3 ‘‘(2) DEPOSITS AND COMMUNITY DEVELOP4 MENT LOANS AND INVESTMENTS.—An appropriate 

5 Federal financial supervisory agency shall include 

6 data on deposits and community development loans 

7 and investments in the disclosure statements pre8 pared under paragraph (1). 

9 ‘‘(3) ADJUSTED FORM.—An appropriate Fed10 eral financial supervisory agency may adjust the 

11 form of the disclosure statement prepared under 

12 paragraph (1) if necessary, because of special cir13 cumstances, to protect the privacy of a borrower or 

14 the competitive position of a regulated financial in15 stitution. 

16 ‘‘(c) CENTRAL DATA DEPOSITORIES.—The Federal 

17 Financial Institutions Examination Council, in consulta18 tion with the appropriate Federal financial supervisory 

19 agencies, shall implement a system— 

20 ‘‘(1) to allow the public to access online and in 

21 a searchable format the data maintained under 

22 paragraphs (1) through (4) of subsection (a); and 

23 ‘‘(2) that ensures that personally identifiable fi24 nancial information is not disclosed to public. 


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1 ‘‘(d) LIMITATION.—An appropriate Federal financial 

2 supervisory agency may not use the authorities of the ap3 propriate Federal financial supervisory agency under this 

4 section to obtain a record from a regulated financial insti5 tution for the purpose of gathering or analyzing the per6 sonally identifiable financial information of a consumer. 

7 ‘‘SEC. 811. COMMUNITY ADVISORY COMMITTEES. 

8 ‘‘(a) DEPOSITORY INSTITUTIONS.—Each regulated 

9 financial institution that is not a U.S. nonbank mortgage 

10 originator shall form a separate Community Advisory 

11 Committee (which shall be composed of a diverse set of 

12 consumer, housing, community development, and other 

13 stakeholder groups) in each of the following: 

14 ‘‘(1) With respect to a depository institution 

15 with consolidated assets equal to or greater than 

16 $2,000,000,000 the branches of which are located in 

17 1 census region, each metropolitan statistical area 

18 where the financial institution or any subsidiaries of 

19 the financial institution have a branch or other facil20 ity (including an automated teller machine) and each 

21 metropolitan statistical area where the financial in22 stitution has a substantial number of customers who 

23 maintain deposit accounts with the financial institu24 tion. 


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1 ‘‘(2) With respect to a depository institution 

2 with consolidated assets equal to or greater than 

3 $2,000,000,000 the branches of which are located in 

4 more than 1 census region, each census division 

5 within each of the regions. 

6 ‘‘(3) With respect to a depository institution 

7 with consolidated assets of less than 

8 $2,000,000,000, each State where the financial in9 stitution or any subsidiaries of the financial institu10 tion are located. 

11 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATORS.— 

12 Each U.S. nonbank mortgage originator shall form a sepa13 rate Community Advisory Committee (which shall be com14 posed of a diverse set of consumer, housing, community 

15 development, and other stakeholder groups) in each of the 

16 following: 

17 ‘‘(1) With respect to a U.S. nonbank mortgage 

18 originator that is required to make a number of dis19 closures under the Home Mortgage Disclosure Act of 

20 1975 (12 U.S.C. 2801 et seq.) that is less than the 

21 national median, each State in which the U.S. 

22 nonbank mortgage originator offers loans. 

23 ‘‘(2) With respect to a U.S. nonbank mortgage 

24 originator that is required to make a number of dis25 closures under the Home Mortgage Disclosure Act of 


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1 1975 (12 U.S.C. 2801 et seq.) that is more than the 

2 national median, each census division within the cen3 sus regions in which the U.S. nonbank mortgage 

4 originator offers loans. 

5 ‘‘(c) BIANNUAL CONSULTATION.—The executives of 

6 each regulated financial institution shall meet not less fre7 quently than twice per year with the Community Advisory 

8 Committees of the regulated financial institution formed 

9 under subsection (a) or (b), as applicable— 

10 ‘‘(1) to discuss the financial institution’s cur11 rent work to meet the credit and deposit needs of 

12 low- and moderate-income individuals and under13 served communities, persons with disabilities, 

14 LGBTQ+ communities, and Chinese, Asian Indian, 

15 Filipino, Japanese, Korean, Vietnamese, Pakistani, 

16 Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur17 mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 

18 Hispanic or Latino, Black or African American, 

19 American Indian and Alaska Native, Native Hawai20 ian, Samoan, Chamorro, Tongan, iTaukei, 

21 Marshallese, and Other Pacific Islander commu22 nities, as applicable to the geographic areas of the 

23 financial institution; 

24 ‘‘(2) with respect to an institution described in 

25 subsection (a)(2) or a U.S. nonbank mortgage origiVerDate Sep 11 2014 19:41 Sep 10, 2024 Jkt 049200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\H9245.IH H9245

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1 nator described in subsection (b)(2), to assist the ex2 ecutives in developing and updating a plan for how 

3 the institution will work to meet the credit needs of 

4 the institution’s entire community, including low5 and moderate-income neighborhoods; and 

6 ‘‘(3) to discuss the institution’s data (which 

7 shall be disaggregated by Chinese, Asian Indian, Fil8 ipino, Japanese, Korean, Vietnamese, Pakistani, 

9 Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur10 mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 

11 Hispanic or Latino, Black or African American, 

12 American Indian and Alaska Native, and Native Ha13 waiian, Samoan, Chamorro, Tongan, iTaukei, 

14 Marshallese and Other Pacific Islander communities, 

15 as applicable to the institution’s geographic areas) 

16 on— 

17 ‘‘(A) mortgage lending and lending to 

18 small businesses and small farms, as defined in 

19 section 804(a)(2)(C); 

20 ‘‘(B) retail products and services; 

21 ‘‘(C) community development services; and 

22 ‘‘(D) community development financing. 

23 ‘‘(d) SPECIFIC CONSULTATIONS.—In addition to the 

24 consultations required under paragraph (2), the executives 

25 of a depository institution described in subsection (a)(2) 


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1 shall meet with the Community Advisory Committee of the 

2 institution before— 

3 ‘‘(1) the institution applies for a merger or ac4 quisition; 

5 ‘‘(2) the institution, or any subsidiary of the in6 stitution, applies for deposit insurance; 

7 ‘‘(3) the institution applies to open a new 

8 branch or to relocate an existing branch; or 

9 ‘‘(4) the institution provides notice that it 

10 would close a branch or other facility. 

11 ‘‘SEC. 812. STUDY ON DISCRIMINATION AND DISPARITIES IN 

12 ACCESS TO CREDIT. 

13 ‘‘(a) STUDY.—Not later than the end of the 2-year 

14 period beginning on the date of enactment of this section, 

15 and every 2 years thereafter, the appropriate Federal fi16 nancial supervisory agencies shall, jointly, and in consulta17 tion with such other Federal or State agencies as the ap18 propriate Federal financial supervisory agencies determine 

19 appropriate, complete an interagency statistical study to 

20 identify— 

21 ‘‘(1) metropolitan areas and rural counties that 

22 either experience ongoing discrimination or exhibit 

23 significant racial disparities in access to credit for 

24 any racial or ethnic group; and 


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1 ‘‘(2) significant disparities in access to branches 

2 by racial or ethnic composition of census tract and 

3 disparities in access to community development fi4 nancing by racial or ethnic composition of census 

5 tract. 

6 ‘‘(b) USE OF DATA.—In carrying out each study re7 quired under subsection (a), the appropriate Federal fi8 nancial supervisory agencies shall make use of data includ9 ing— 

10 ‘‘(1) data obtained under the Home Mortgage 

11 Disclosure Act of 1975 (12 U.S.C. 2801 et seq.); 

12 ‘‘(2) data obtained under section 704B of the 

13 Equal Credit Opportunity Act (15 U.S.C. 1691o–2); 

14 ‘‘(3) data obtained under this Act; 

15 ‘‘(4) available State data; and 

16 ‘‘(5) information contained in public litigation 

17 against regulated financial institutions for redlining 

18 or lending discrimination (including litigation initi19 ated by the Bureau of Consumer Financial Protec20 tion, the Department of Housing and Urban Affairs, 

21 the Department of Justice, or by private parties). 

22 ‘‘(c) REPORT.—Upon the completion of each study 

23 required under subsection (a), the appropriate Federal fi24 nancial supervisory agencies shall jointly submit to the 

25 Committee on Banking, Housing, and Urban Affairs of 


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1 the Senate and the Committee on Financial Services of 

2 the House of Representatives a report that includes— 

3 ‘‘(1) all findings and determinations made in 

4 carrying out the study; and 

5 ‘‘(2) policy recommendations to remedy the dis6 crimination and disparities identified in the study. 

7 ‘‘SEC. 813. PUBLIC REGISTRIES. 

8 ‘‘The appropriate Federal supervisory financial agen9 cies, acting through the Federal Financial Institutions Ex10 amination Council, shall— 

11 ‘‘(1) maintain a list of community-based organi12 zations and other stakeholders who wish to be listed 

13 and who have commented on examinations con14 ducted under section 804 and applications regarding 

15 community needs and bank performance; and 

16 ‘‘(2) conduct outreach to community groups 

17 and strive for geographical diversity, gender and ra18 cial diversity, and diversity in terms of various types 

19 of needs, including affordable housing and economic 

20 development to community facilities.’’. 

21 (c) AMENDMENT TO THE BANK HOLDING COMPANY

22 ACT OF 1956.—Section 4(k)(6) of the Bank Holding 

23 Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 

24 to read as follows: 


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1 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

2 REQUIRED.— 

3 ‘‘(A) IN GENERAL.—No financial holding 

4 company shall directly or indirectly acquire, and 

5 no company that becomes a financial holding 

6 company shall directly or indirectly acquire con7 trol of, any company in the United States, in8 cluding through merger, consolidation, or other 

9 type of business combination, that is engaged in 

10 activities permitted under this subsection or 

11 subsection (n) or (o), unless— 

12 ‘‘(i) the holding company has provided 

13 notice to the Board, not later than 60 days 

14 prior to the proposed acquisition or prior 

15 to becoming a financial holding company, 

16 and during that time period, or such 

17 longer time period not exceeding an addi18 tional 60 days, as established by the 

19 Board; 

20 ‘‘(ii) the Board has provided public 

21 notice and opportunity for comment for 

22 not less than 60 days; and 

23 ‘‘(iii) the Board has not issued a no24 tice disapproving the proposed acquisition 

25 or retention. 


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1 ‘‘(B) FACTORS FOR CONSIDERATION.—In 

2 reviewing any prior notice filed under this para3 graph, the Board shall— 

4 ‘‘(i) consider the overall rating of the 

5 financial holding company under the Com6 munity Reinvestment Act of 1977 (12 

7 U.S.C. 2901 et seq.) and any improvement 

8 plans submitted pursuant to that Act; 

9 ‘‘(ii) provide opportunity for public 

10 comment for a period of not less than 60 

11 days; 

12 ‘‘(iii) consider changes in the commu13 nity reinvestment performance of the fi14 nancial holding company since the last rat15 ing under the Community Reinvestment 

16 Act of 1977 (12 U.S.C. 2901 et seq.) by 

17 the appropriate Federal financial super18 visory agency; and 

19 ‘‘(iv) require— 

20 ‘‘(I) a demonstration that grant21 ing the application for a deposit facil22 ity is in the public interest, which 

23 shall include submission to the appro24 priate Federal financial supervisory 

25 agency of a community benefits plan 


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1 commensurate with the ability of the 

2 institution to carry out that plan; 

3 ‘‘(II) that the institution consult 

4 with community-based organizations 

5 and other community stakeholders in 

6 developing the community benefits 

7 plan; and 

8 ‘‘(III) a public hearing for any 

9 bank that has received a ‘need-to-im10 prove’ or ‘low satisfactory’ grade in 

11 any assessment area during the last 

12 examination under the Community 

13 Reinvestment Act of 1977 (12 U.S.C. 

14 2901 et seq.).’’. 

15 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

16 Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 

17 U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 

18 804(c) of the Community Reinvestment Act of 1977 (12 

19 U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 

20 Community Reinvestment Act of 1977 (12 U.S.C. 

21 2903(f))’’. 

22 SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 

23 SERVICE TO UNDERSERVED AREAS. 

24 (a) IN GENERAL.—The Federal Credit Union Act (12 

25 U.S.C. 1751 et seq.) is amended— 


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1 (1) in section 101 (12 U.S.C. 1752)— 

2 (A) in paragraph (8), by striking ‘‘and’’ at 

3 the end; 

4 (B) in paragraph (9), by striking the pe5 riod at the end and inserting ‘‘; and’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(10) the term ‘underserved area’— 

8 ‘‘(A) means a local community, neighbor9 hood, or rural district that— 

10 ‘‘(i) is an investment area, as defined 

11 in section 103 of the Community Develop12 ment Banking and Financial Institutions 

13 Act of 1994 (12 U.S.C. 4702), that meets 

14 such additional requirements that the 

15 Board may impose; and 

16 ‘‘(ii) is underserved, based on data of 

17 the Board and the Federal banking agen18 cies (as defined in section 3 of the Federal 

19 Deposit Insurance Act (12 U.S.C. 1813)), 

20 by other depository institutions (as defined 

21 in section 19(b)(1)(A) of the Federal Re22 serve Act (12 U.S.C. 461(b)(1)(A)); and 

23 ‘‘(B) notwithstanding subparagraph (A), 

24 includes, with respect to any Federal credit 


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1 union, any geographic area within which the 

2 credit union— 

3 ‘‘(i) has received approval to provide 

4 service as an underserved area before the 

5 date of enactment of this paragraph from 

6 the Administration; and 

7 ‘‘(ii) has established a service facility 

8 before that date of enactment.’’; 

9 (2) in section 106 (12 U.S.C. 1756)— 

10 (A) in the first sentence, by striking ‘‘Fed11 eral’’ and inserting ‘‘(a) Federal’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(b) The Board shall monitor adherence by a Federal 

14 credit union to a significant unmet needs plan submitted 

15 under section 109(h) by that Federal credit union that 

16 describes how the Federal credit union will serve the de17 posit and other financial needs of the community.’’; 

18 (3) in section 109 (12 U.S.C. 1759)— 

19 (A) in subsection (c), by amending para20 graph (2) to read as follows: 

21 ‘‘(2) EXCEPTION FOR UNDERSERVED AREAS.— 

22 ‘‘(A) IN GENERAL.—Notwithstanding sub23 section (b), the Board may approve an applica24 tion by a Federal credit union to allow the 

25 membership of the credit union to include any 


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1 person or organization whose principal resi2 dence or place of business is located within a 

3 local community, neighborhood, or rural district 

4 if— 

5 ‘‘(i) the Board determines— 

6 ‘‘(I) at any time after August 7, 

7 1998, that the local community, 

8 neighborhood, or rural district taken 

9 into account for purposes of this para10 graph is an underserved area; and 

11 ‘‘(II) at the time of the approval, 

12 that the credit union is well capital13 ized or adequately capitalized (as de14 fined in section 216(c)(1)); and 

15 ‘‘(ii) before the end of the 24-month 

16 period beginning on the date of the ap17 proval, the credit union has established 

18 and maintains an ongoing method to pro19 vide services in the local community, neigh20 borhood, or rural district. 

21 ‘‘(B) TERMINATION OF APPROVAL.— 

22 ‘‘(i) IN GENERAL.—Any failure of a 

23 Federal credit union to meet the require24 ment of clause (ii) of subparagraph (A) by 

25 the end of the 24-month period referred to 


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1 in that clause shall constitute a termi2 nation, as a matter of law, of any approval 

3 of an application under this paragraph by 

4 the Board with respect to the membership 

5 of the credit union. 

6 ‘‘(ii) SIGNIFICANT UNMET NEEDS

7 PLAN.—The Board may terminate the ap8 proval of an application under this para9 graph with respect to the membership of a 

10 Federal credit union upon a finding that 

11 the credit union is not meeting the terms 

12 of the significant unmet needs plan of the 

13 credit union submitted under subsection 

14 (h)(1). 

15 ‘‘(C) CREDIT UNION REPORTING REQUIRE16 MENT.—Any Federal credit union that has an 

17 application approved under this paragraph 

18 shall, as part of the ordinary course of the ex19 amination cycle and supervision process, submit 

20 a report to the Administration that includes— 

21 ‘‘(i) the number of members of the 

22 credit union who are members by reason of 

23 the application; 

24 ‘‘(ii) the number of offices or facilities 

25 maintained by the credit union in the local 


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1 community, neighborhood, or rural district 

2 taken into account by the Board in approv3 ing the application; and 

4 ‘‘(iii) evidence, as specified by the 

5 Board by regulation, demonstrating com6 pliance by the credit union with the signifi7 cant unmet needs plan submitted by the 

8 credit union under subsection (h)(1), as 

9 specified by the Administration. 

10 ‘‘(D) PUBLICATION BY ADMINISTRA11 TION.—The Administration shall publish an an12 nual report containing— 

13 ‘‘(i) a list of all the applications ap14 proved under this paragraph before the 

15 date on which the report is published; 

16 ‘‘(ii) the number and locations of the 

17 underserved areas taken into account in 

18 approving those applications; 

19 ‘‘(iii) the total number of members of 

20 credit unions who are members by reason 

21 of the approval of those applications; and 

22 ‘‘(iv) evidence demonstrating compli23 ance by credit unions with significant 

24 unmet needs plans submitted by the credit 


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1 unions under subsection (h)(1), as speci2 fied by the Administration.’’; 

3 (B) in subsection (e)(2), by inserting ‘‘sub4 section (c)(2) and’’ after ‘‘provided in’’; and 

5 (C) by adding at the end the following: 

6 ‘‘(h) ADDITIONAL REQUIREMENTS FOR COMMUNITY

7 CREDIT UNIONS.— 

8 ‘‘(1) IN GENERAL.—A Federal credit union de9 siring a field of membership as a credit union de10 scribed in subsection (b)(3) shall submit to the 

11 Board a business plan, which shall include, among 

12 other issues, a marketing plan that identifies— 

13 ‘‘(A) the unique needs of the various demo14 graphic groups in the proposed community; and 

15 ‘‘(B) how the credit union will market to 

16 each group, particularly underserved groups, to 

17 address those needs. 

18 ‘‘(2) PUBLIC COMMENT AND HEARING.—With 

19 respect to a Federal credit union desiring a field of 

20 membership as a credit union described in sub21 section (b)(3) for an area with multiple political ju22 risdictions with a population of not less than 

23 2,500,000, the Administration shall— 


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1 ‘‘(A) publish a notice in the Federal Reg2 ister seeking comment from interested parties 

3 about the proposed community; and 

4 ‘‘(B) conduct a public hearing regarding 

5 the application of the Federal credit union.’’. 

6 (b) REGULATIONS.—Not later than 1 year after the 

7 date of enactment of this Act, the National Credit Union 

8 Administration Board shall issue final regulations to im9 plement the amendments made by subsection (a). 

10 SEC. 205. RAISING PUBLIC WELFARE CAPS. 

11 (a) NATIONAL BANKS.—The paragraph designated 

12 as the ‘‘Eleventh.’’ of section 5136 of the Revised Statutes 

13 of the United States (12 U.S.C. 24) is amended to read 

14 as follows: ‘‘Eleventh. To make investments directly or in15 directly, each of which promotes the public welfare by ben16 efitting primarily low- and moderate-income communities 

17 or families (such as by providing housing, services, or 

18 jobs). An association shall not make any such investment 

19 if the investment would expose the association to unlimited 

20 liability. The Comptroller of the Currency shall limit an 

21 association’s investments in any 1 project and an associa22 tion’s aggregate investments under this paragraph. Aggre23 gate investments for associations that do not meet the cri24 teria of being well capitalized, as defined in section 24.2(e) 

25 of title 12, Code of Federal Regulations, or any successor 


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1 regulation, under this paragraph shall not exceed an 

2 amount equal to the sum of 5 percent of the association’s 

3 capital stock actually paid in and unimpaired and 5 per4 cent of the association’s unimpaired surplus fund, unless 

5 the Comptroller determines by order that the higher 

6 amount will pose no significant risk to the affected deposit 

7 insurance fund, and the association is adequately capital8 ized. In no case shall aggregate investments of an associa9 tion that do not meet the criteria for being well capitalized 

10 under this paragraph exceed an amount equal to the sum 

11 of 15 percent of the association’s capital stock actually 

12 paid in and unimpaired and 15 percent of the association’s 

13 unimpaired surplus fund. Aggregate investments of well 

14 capitalized associations, as defined in section 24.2(e) of 

15 title 12, Code of Federal Regulations, or any successor 

16 regulation, under this paragraph shall not exceed an 

17 amount equal to the sum of 15 percent of the association’s 

18 capital stock actually paid in and unimpaired and 15 per19 cent of the association’s unimpaired surplus fund, unless 

20 the Comptroller determines by order that the higher 

21 amount will pose no significant risk to the affected deposit 

22 insurance fund. With respect to any association that meets 

23 the criteria for being well capitalized, as defined in section 

24 24.2(e) of title 12, Code of Federal Regulations, or any 

25 successor regulation, aggregate investments under this 


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1 paragraph shall not exceed an amount equal to the sum 

2 of 25 percent of the association’s capital stock actually 

3 paid in and unimpaired and 25 percent of the association’s 

4 unimpaired surplus fund. The foregoing standards and 

5 limitations apply to investments under this paragraph 

6 made by a national bank directly and by its subsidiaries.’’. 

7 (b) CONFORMING AMENDMENTS FOR STATE MEM8 BER BANKS.—The 23rd undesignated paragraph of sec9 tion 9 of the Federal Reserve Act (12 U.S.C. 338a) is 

10 amended to read as follows: 

11 ‘‘A State member bank may make investments di12 rectly or indirectly, each of which promotes the pub13 lic welfare by benefitting primarily low- and mod14 erate-income communities or families (such as by 

15 providing housing, services, or jobs), to the extent 

16 permissible under State law. A State member bank 

17 shall not make any such investment if the invest18 ment would expose the State member bank to unlim19 ited liability. Aggregate investments for State mem20 ber banks that do not meet the criteria of being well 

21 capitalized, as defined in section 208.43(b) of title 

22 12, Code of Federal Regulations, or any successor 

23 regulation, under this paragraph shall not exceed an 

24 amount equal to the sum of 5 percent of the associa25 tion’s capital stock actually paid in and unimpaired 


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1 and 5 percent of the association’s unimpaired sur2 plus fund, unless the Board determines by order 

3 that the higher amount will pose no significant risk 

4 to the affected deposit insurance fund, and the asso5 ciation is adequately capitalized. In no case shall ag6 gregate investments of a State member bank that 

7 does not meet the criteria for being well capitalized 

8 under this paragraph exceed an amount equal to the 

9 sum of 15 percent of the association’s capital stock 

10 actually paid in and unimpaired and 15 percent of 

11 the association’s unimpaired surplus fund. Aggre12 gate investments of well capitalized State member 

13 banks, as defined in section 208.43(b) of title 12, 

14 Code of Federal Regulations, or any successor regu15 lation, with an examination rating under section 804 

16 of the Community Reinvestment Act of 1977 (12 

17 U.S.C. 2903) of ‘outstanding’ or ‘satisfactory’, 

18 under this paragraph shall not exceed an amount 

19 equal to the sum of 15 percent of the State member 

20 bank’s capital stock actually paid in and unimpaired 

21 and 15 percent of the state member Bank’s 

22 unimpaired surplus fund, unless the Board deter23 mines by order that the higher amount will pose no 

24 significant risk to the affected deposit insurance 

25 fund. With respect to any State member bank that 


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1 meets meet the criteria for being well capitalized as 

2 defined in section 208.43(b) of title 12, Code of 

3 Federal Regulations, or any successor regulation, 

4 with an examination rating under section 804 of the 

5 Community Reinvestment Act of 1977 (12 U.S.C. 

6 2903) of ‘outstanding’ or ‘satisfactory’, aggregate 

7 investments under this paragraph shall not exceed 

8 an amount equal to the sum of 25 percent of the 

9 State member bank’s capital stock actually paid in 

10 and unimpaired and 25 percent of the State member 

11 bank’s unimpaired surplus fund. The foregoing 

12 standards and limitations apply to investments 

13 under this paragraph made by a State member bank 

14 directly and by its subsidiaries.’’. 

15 SEC. 206. TEMPORARY ELIGIBILITY OF CERTAIN DIRECT 

16 DESCENDANTS OF CERTAIN VETERANS FOR 

17 HOUSING LOANS GUARANTEED BY THE SEC18 RETARY OF VETERANS AFFAIRS. 

19 (a) IN GENERAL.—During the period described in 

20 subsection (b)— 

21 (1) section 3701(b) of title 38, United States 

22 Code, shall be applied and administered by adding at 

23 the end the following new paragraph: 

24 ‘‘(8)(A) The term ‘veteran’ also includes, for 

25 purposes of home loans, any direct descendant of a 


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1 veteran described in subparagraph (B) if the de2 scendant— 

3 ‘‘(i) is living on the date of the enactment 

4 of the American Housing and Economic Mobil5 ity Act of 2024; 

6 ‘‘(ii) is a first-time homebuyer; and 

7 ‘‘(iii) is a first-generation homebuyer. 

8 ‘‘(B) A veteran described in this clause is a vet9 eran who— 

10 ‘‘(i) served on active duty at any time dur11 ing the period between June 22, 1944, and 

12 April 11, 1968; 

13 ‘‘(ii) is deceased; and 

14 ‘‘(iii) did not receive a housing loan benefit 

15 under this chapter during his or her lifetime. 

16 ‘‘(C) In this paragraph: 

17 ‘‘(i) The term ‘direct descendant’ includes 

18 a legally adopted descendant. 

19 ‘‘(ii) The terms ‘first-generation home20 buyer’ and ‘first-time homebuyer’ have the 

21 meanings given those terms in section 201(a) of 

22 the American Housing and Economic Mobility 

23 Act of 2024.’’; and 


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1 (2) section 3702(a)(2) of such title shall be ap2 plied and administered by adding at the end the fol3 lowing new subparagraph: 

4 ‘‘(H) Each direct descendant described in sec5 tion 3701(b)(8) of this title.’’. 

6 (b) PERIOD DESCRIBED.—The period described in 

7 this subsection is the period beginning one year after the 

8 date of the enactment of this Act and ending ten years 

9 after the date on which the Secretary of Veterans Affairs 

10 prescribes the regulations required by subsection (c). 

11 (c) REGULATIONS.— 

12 (1) IN GENERAL.—Not later than 180 days 

13 after the date of the enactment of this Act, the Sec14 retary of Veterans Affairs shall prescribe regulations 

15 to carry out this section. 

16 (2) ELEMENTS.—The regulations required by 

17 paragraph (1) shall provide rules and procedures for 

18 determining— 

19 (A) the eligibility of a direct descendant 

20 for housing loan benefits under this section 

21 when the records of the Veterans Benefits Ad22 ministration are incomplete or otherwise inad23 equate to verify eligibility; and 

24 (B) appropriate implementation of this sec25 tion if more than one direct descendant of a 


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1 veteran seeks housing loan benefits under this 

2 section. 

3 TITLE III—REMOVING BARRIERS 

4 THAT ISOLATE COMMUNITIES 

5 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 

6 ACT. 

7 (a) PURPOSES.—The purposes of the amendments 

8 made by this section are— 

9 (1) to expand, as well as clarify, confirm, and 

10 create greater consistency in, the protections against 

11 discrimination on the basis of all covered character12 istics; and 

13 (2) to provide guidance and notice to individ14 uals, organizations, corporations, and agencies re15 garding their obligations under Federal law. 

16 (b) AMENDMENTS TO THE FAIR HOUSING ACT.— 

17 The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend18 ed— 

19 (1) in section 802 (42 U.S.C. 3602), by adding 

20 at the end the following: 

21 ‘‘(p) ‘Gender identity’ means the gender-related iden22 tity, appearance, or mannerisms or other gender-related 

23 characteristics of an individual, regardless of the individ24 ual’s designated sex at birth. 


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1 ‘‘(q) ‘Marital status’ has the meaning given the term 

2 in section 202.2 of title 12, Code of Federal Regulations, 

3 or any successor regulation. 

4 ‘‘(r) ‘Sexual orientation’ means homosexuality, het5 erosexuality, or bisexuality. 

6 ‘‘(s) ‘Source of income’ includes income for which 

7 there is a reasonable expectation that the income will con8 tinue from— 

9 ‘‘(1) a profession, occupation, or job; 

10 ‘‘(2) any government or private assistance, 

11 grant, loan, or rental assistance program, including 

12 vouchers issued under the United States Housing 

13 Act of 1937 (42 U.S.C. 1437 et seq.); 

14 ‘‘(3) a gift, an inheritance, a pension, an annu15 ity, alimony, child support, or other consideration or 

16 benefit; or 

17 ‘‘(4) the sale or pledge of property or an inter18 est in property. 

19 ‘‘(t) ‘Veteran status’ means— 

20 ‘‘(1) a member of the uniformed services, as de21 fined in section 101 of title 10, United States Code; 

22 or 

23 ‘‘(2) a veteran, as defined in section 101 of title 

24 38, United States Code.’’; 

25 (2) in section 804 (42 U.S.C. 3604)— 


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1 (A) by inserting ‘‘actual or perceived’’ be2 fore ‘‘race, color’’ each place that term appears; 

3 (B) by striking ‘‘sex,’’ each place that term 

4 appears and inserting ‘‘sex (including sexual 

5 orientation and gender identity), marital status, 

6 source of income, veteran status,’’; and 

7 (C) in subsection (c)— 

8 (i) by inserting ‘‘(1)’’ before ‘‘To 

9 make’’; and 

10 (ii) by adding at the end the fol11 lowing: 

12 ‘‘(2) Nothing in this title shall be construed to— 

13 ‘‘(A) prohibit a lender from implementing a 

14 loan program for veterans or based upon veteran 

15 status; or 

16 ‘‘(B) prohibit an entity from providing housing 

17 assistance under— 

18 ‘‘(i) section 8(o)(19) of the United States 

19 Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); 

20 ‘‘(ii) the Homeless Providers Grant and 

21 Per Diem program of the Department of Vet22 erans Affairs; or 

23 ‘‘(iii) any other Federal housing assistance 

24 program for veterans or based on veteran sta25 tus.’’; 


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1 (3) in section 805 (42 U.S.C. 3605)— 

2 (A) by inserting ‘‘actual or perceived’’ be3 fore ‘‘race, color’’ each place that term appears; 

4 and 

5 (B) by striking ‘‘sex,’’ each place that term 

6 appears and inserting ‘‘sex (including sexual 

7 orientation and gender identity), marital status, 

8 source of income, veteran status,’’; 

9 (4) in section 806 (42 U.S.C. 3606)— 

10 (A) by inserting ‘‘actual or perceived’’ be11 fore ‘‘race, color’’; and 

12 (B) by striking ‘‘sex,’’ each place that term 

13 appears and inserting ‘‘sex (including sexual 

14 orientation and gender identity), marital status, 

15 source of income, veteran status,’’; and 

16 (5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 

17 by striking ‘‘sex,’’ and inserting ‘‘sex (including sex18 ual orientation and gender identity), marital status, 

19 source of income, veteran status,’’. 

20 (c) PREVENTION OF INTIMIDATION.—Section 901 of 

21 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend22 ed— 

23 (1) by inserting ‘‘actual or perceived’’ before 

24 ‘‘race, color’’ each place that term appears; and 


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1 (2) by striking ‘‘sex,’’ each place that term ap2 pears and inserting ‘‘sex (including sexual orienta3 tion (as such term is defined in section 802 of this 

4 Act) and gender identity (as defined in section 802 

5 of this Act)), marital status (as defined in section 

6 802), source of income (as defined in section 802), 

7 veteran status (as defined in section 802),’’. 

8 (d) RULE OF CONSTRUCTION.—Nothing in the 

9 amendments made by this section shall be construed to 

10 mean that a particular class of individuals was not pro11 tected against discrimination under Federal law as in ef12 fect on the day before the date of enactment of this Act. 

13 SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 

14 PROGRAMS. 

15 (a) INDIAN HOUSING ASSISTANCE.—Section 502 of 

16 the Native American Housing Assistance and Self-Deter17 mination Act of 1996 (25 U.S.C. 4181) is amended by 

18 adding at the end the following: 

19 ‘‘(c) APPLICABILITY.—Subsections (a) and (b) shall 

20 not apply with respect to tenant-based assistance provided 

21 under section 8(o) of the United States Housing Act of 

22 1937 (42 U.S.C. 1437f(o)).’’. 

23 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 

24 8(q)(2)(B) of the United States Housing Act of 1937 (42 

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1 ing the cost of assisting families with children or families 

2 with a member with a disability that move to lower pov3 erty, higher opportunity neighborhoods (as determined by 

4 the Secretary based on objective, evidence-based criteria)’’ 

5 after ‘‘programs’’. 

6 (c) REGIONAL PLANNING TO INCREASE ACCESS TO

7 HIGHER OPPORTUNITY AREAS.—Section 8(o) of the 

8 United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 

9 is amended by adding at the end the following: 

10 ‘‘(22) INCREASING ACCESS TO HIGHER OPPOR11 TUNITY AREAS.— 

12 ‘‘(A) LOCATION ANALYSIS.— 

13 ‘‘(i) IN GENERAL.—A public housing 

14 agency that administers the program 

15 under this subsection in a metropolitan 

16 area shall— 

17 ‘‘(I) analyze the locations where 

18 the participants in the program of the 

19 public housing agency live; and 

20 ‘‘(II) based on the analysis de21 scribed in subclause (I), establish poli22 cies and practices to reduce disparities 

23 and barriers to access to locations 

24 throughout the metropolitan area that 

25 evidence indicates are more likely to 


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1 improve outcomes for children or 

2 adults. 

3 ‘‘(ii) CONSIDERATIONS.—The location 

4 analysis required under this subparagraph 

5 shall— 

6 ‘‘(I) consider separately the loca7 tions of families with children, house8 holds that include a person with dis9 abilities, and other groups protected 

10 under the Fair Housing Act (42 

11 U.S.C. 3601 et seq.); and 

12 ‘‘(II) include an analysis of the 

13 locations in relation to dwelling units 

14 with rents that are potentially afford15 able to voucher holders and the likely 

16 impact of key neighborhood attributes 

17 on their well-being and long-term suc18 cess, based on Federal and available 

19 local data. 

20 ‘‘(iii) MAPPING TOOLS.—The Sec21 retary shall— 

22 ‘‘(I) provide mapping tools and 

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1 graph using the demographic data on 

2 participating families submitted to the 

3 Secretary under part 908 of title 24, 

4 Code of Federal Regulations, or any 

5 successor regulation; 

6 ‘‘(II) publish a notice in the Fed7 eral Register, subject to public com8 ment, that specifies the data sources 

9 and definitions that will be incor10 porated in each mapping tool required 

11 under subclause (I); and 

12 ‘‘(III) update the notice required 

13 under subclause (II) as needed based 

14 on changes in the availability of rel15 evant data or evidence of neighbor16 hood attributes likely to impact the 

17 well-being and long-term success of 

18 participants in the program under this 

19 subsection. 

20 ‘‘(iv) FREQUENCY AND AVAIL21 ABILITY.—The location analysis required 

22 under this subparagraph shall— 

23 ‘‘(I) be performed by each public 

24 housing agency described in clause (i) 


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1 not less frequently than once every 5 

2 years; 

3 ‘‘(II) be performed by all public 

4 housing agencies in a metropolitan 

5 area in the same year, as determined 

6 by the Secretary; and 

7 ‘‘(III) be made available to the 

8 public in a manner that protects the 

9 privacy of program participants. 

10 ‘‘(B) REGIONAL POLICIES TO INCREASE

11 ACCESS TO HIGHER OPPORTUNITY NEIGHBOR12 HOODS.—Each public housing agency described 

13 in subparagraph (A)(i) shall— 

14 ‘‘(i) consult with other such public 

15 housing agencies in the same metropolitan 

16 area, or smaller regional area approved by 

17 the Secretary, about the possible barriers 

18 and other reasons for the disparities iden19 tified in the location analysis required 

20 under subparagraph (A); 

21 ‘‘(ii) identify policies or practices that 

22 those public housing agencies could adopt 

23 individually or in collaboration, or other 

24 strategies that recipients of grants or other 

25 funding from the Secretary could adopt, to 


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1 reduce the barriers and disparities and in2 crease the share of families with children 

3 and other demographic groups using 

4 vouchers in higher-opportunity neighbor5 hoods in the metropolitan area or region; 

6 and 

7 ‘‘(iii) include in the administrative 

8 plan required under section 982.54 of title 

9 24, Code of Federal Regulations, or any 

10 successor regulation, the policies that the 

11 public housing agency has adopted under 

12 this paragraph. 

13 ‘‘(C) ASSESSMENT.—The Secretary shall 

14 include public housing agency performance in 

15 achieving the goal described in subparagraph 

16 (A)(i)(II) in the periodic assessment of agency 

17 performance in managing the program under 

18 this subsection required under part 985 of title 

19 24, Code of Federal Regulations, or any suc20 cessor regulation.’’. 

21 (d) REQUIRED REGULATORY CHANGES TO PUBLIC

22 HOUSING AGENCY CONSORTIA.— 

23 (1) DEFINITIONS.—In this subsection: 

24 (A) MOVING TO WORK DEMONSTRATION

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1 onstration program’’ means the program estab2 lished under section 204 of the Departments of 

3 Veterans Affairs and Housing and Urban De4 velopment, and Independent Agencies Appro5 priations Act, 1996 (Public Law 104–134; 110 

6 Stat. 1321–281). 

7 (B) PUBLIC HOUSING AGENCY.—The term 

8 ‘‘public housing agency’’ has the meaning given 

9 the term in section 3(b)(6) of the United States 

10 Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 

11 (2) REQUIREMENT.—Not later than 1 year 

12 after the date of enactment of this Act, the Sec13 retary of Housing and Urban Development shall es14 tablish policies and procedures that— 

15 (A) enable public housing agencies that 

16 elect to operate in consortia under section 13(a) 

17 of the United States Housing Act of 1937 (42 

18 U.S.C. 1437k(a)), excluding public housing 

19 agencies participating in the Moving to Work 

20 demonstration program— 

21 (i) to consolidate their funding con22 tracts for assistance provided under section 

23 8(o) of such Act (42 U.S.C. 1437f(o)) into 

24 a single contract; 


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1 (ii) to consolidate their funding con2 tracts for assistance provided under sub3 sections (d) and (e) of section 9 of such 

4 Act (42 U.S.C. 1437g); or 

5 (iii) to exercise the consolidation op6 tions under each of clauses (i) and (ii); and 

7 (B) enable public housing agencies to form 

8 partial consortia under such section 13(a) (42 

9 U.S.C. 1437k(a)) that consolidate the adminis10 tration of certain aspects of their housing pro11 grams to increase access to higher-opportunity 

12 areas or for other purposes, subject to such re13 quirements as the Secretary may establish. 

14 (3) MOVING TO WORK AGENCIES.—Any flexi15 bility or waiver applicable to the Moving to Work 

16 demonstration program shall not apply to any activi17 ties or funds administered through a partial consor18 tium formed under paragraph (2)(B) by 1 or more 

19 public housing agencies participating in the Moving 

20 to Work demonstration program. 

21 TITLE IV—ESTATE TAX REFORM 

22 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 

23 1986. 

24 Except as otherwise expressly provided, whenever in 

25 this title an amendment or repeal is expressed in terms 


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1 of an amendment to, or repeal of, a section or other provi2 sion, the reference shall be considered to be made to a 

3 section or other provision of the Internal Revenue Code 

4 of 1986. 

5 SEC. 402. RATE ADJUSTMENT. 

6 (a) INCREASE IN ESTATE TAX RATES.—The table 

7 contained in section 2001(c) is amended to read as follows: 

If the amount with respect to 

which the tentative tax to 

be computed is: 

The tentative tax is: 

Not over $13,000,000 ................... 55 percent of such amount. 

Over $13,000,000 but not over 

$93,000,000.

$7,150,000, plus 60 percent of the 

excess of such amount over 

$13,000,000. 

Over $93,000,000 .......................... $55,150,000, plus 65 percent of the 

excess of such amount over 

$93,000,000. 

8 (b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 

9 Paragraph (3) of section 2010(c) is amended to read as 

10 follows: 

11 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur12 poses of this subsection, the basic exclusion amount 

13 is $3,500,000.’’. 

14 (c) SURTAX ON BILLION DOLLAR ESTATES.—Section 

15 2001 is amended— 

16 (1) in subsection (b), by striking ‘‘The tax’’ and 

17 inserting ‘‘Subject to subsection (h), the tax’’, and 

18 (2) by adding at the end the following new sub19 section: 

20 ‘‘(h) SURTAX ON BILLION DOLLAR ESTATES.— 


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1 ‘‘(1) IN GENERAL.—In the case of a taxable es2 tate for which the applicable amount is in excess of 

3 $1,000,000,000, the tax determined under sub4 section (b) shall be increased by an amount equal to 

5 10 percent of such applicable amount. 

6 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

7 this subsection, the applicable amount shall be equal 

8 to the sum of the amounts under subparagraphs (A) 

9 and (B) of paragraph (1) of subsection (b) for the 

10 taxable estate.’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to estates of decedents dying, and 

13 generation-skipping transfers and gifts made, after the 

14 date of the enactment of this Act. 

15 SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 

16 GRANTOR RETAINED ANNUITY TRUSTS. 

17 (a) IN GENERAL.—Subsection (b) of section 2702 is 

18 amended— 

19 (1) by redesignating paragraphs (1), (2), and 

20 (3) as subparagraphs (A), (B), and (C), respectively, 

21 and by moving such subparagraphs (as so redesig22 nated) 2 ems to the right; 

23 (2) by striking ‘‘For purposes of’’ and inserting 

24 the following: 

25 ‘‘(1) IN GENERAL.—For purposes of’’; 


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1 (3) by striking ‘‘paragraph (1) or (2)’’ in para2 graph (1)(C) (as so redesignated) and inserting 

3 ‘‘subparagraph (A) or (B)’’; and 

4 (4) by adding at the end the following new 

5 paragraph: 

6 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE7 SPECT TO GRANTOR RETAINED ANNUITIES.—For 

8 purposes of subsection (a), in the case of an interest 

9 described in paragraph (1)(A) (determined without 

10 regard to this paragraph) which is retained by the 

11 transferor, such interest shall be treated as de12 scribed in such paragraph only if— 

13 ‘‘(A) the right to receive the fixed amounts 

14 referred to in such paragraph is for a term of 

15 not less than 10 years, 

16 ‘‘(B) such fixed amounts, when determined 

17 on an annual basis, do not decrease relative to 

18 any prior year during the first 10 years of the 

19 term referred to in subparagraph (A), and 

20 ‘‘(C) the remainder interest has a value 

21 equal to or greater than 10 percent of the value 

22 of the assets transferred to the trust, deter23 mined as of the time of the transfer.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to transfers made after the date 

3 of the enactment of this Act. 

4 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 

5 GRANTOR TRUSTS. 

6 (a) IN GENERAL.—Subtitle B is amended by adding 

7 at the end the following new chapter: 

8 ‘‘CHAPTER 16—SPECIAL RULES FOR 

9 GRANTOR TRUSTS 

‘‘Sec. 2901. Application of transfer taxes. 

10 ‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 

11 ‘‘(a) IN GENERAL.—In the case of any portion of a 

12 trust to which this section applies— 

13 ‘‘(1) the value of the gross estate of the de14 ceased deemed owner of such portion shall include 

15 all assets attributable to that portion at the time of 

16 the death of such owner, 

17 ‘‘(2) any distribution from such portion to one 

18 or more beneficiaries during the life of the deemed 

19 owner of such portion shall be treated as a transfer 

20 by gift for purposes of chapter 12, and 

21 ‘‘(3) if at any time during the life of the 

22 deemed owner of such portion, such owner ceases to 

23 be treated as the owner of such portion under sub24 part E of part 1 of subchapter J of chapter 1, all 


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1 assets attributable to such portion at such time shall 

2 be treated for purposes of chapter 12 as a transfer 

3 by gift made by the deemed owner. 

4 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP5 PLIES.—This section shall apply to— 

6 ‘‘(1) the portion of a trust with respect to 

7 which the grantor is the deemed owner, and 

8 ‘‘(2) the portion of the trust to which a person 

9 who is not the grantor is a deemed owner by reason 

10 of the rules of subpart E of part 1 of subchapter J 

11 of chapter 1, and such deemed owner engages in a 

12 sale, exchange, or comparable transaction with the 

13 trust that is disregarded for purposes of subtitle A. 

14 For purposes of paragraph (2), the portion of the trust 

15 described with respect to a transaction is the portion of 

16 the trust attributable to the property received by the trust 

17 in such transaction, including all retained income there18 from, appreciation thereon, and reinvestments thereof, net 

19 of the amount of consideration received by the deemed 

20 owner in such transaction. 

21 ‘‘(c) EXCEPTIONS.—This section shall not apply to— 

22 ‘‘(1) any trust that is includible in the gross es23 tate of the deemed owner (without regard to sub24 section (a)(1)), and 


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1 ‘‘(2) any other type of trust that the Secretary 

2 determines by regulations or other guidance does not 

3 have as a significant purpose the avoidance of trans4 fer taxes. 

5 ‘‘(d) DEEMED OWNER DEFINED.—For purposes of 

6 this section, the term ‘deemed owner’ means any person 

7 who is treated as the owner of a portion of a trust under 

8 subpart E of part 1 of subchapter J of chapter 1. 

9 ‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST

10 MADE BY OWNER.—The amount to which subsection (a) 

11 applies shall be reduced by the value of any transfer by 

12 gift by the deemed owner to the trust previously taken 

13 into account by the deemed owner under chapter 12. 

14 ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im15 posed pursuant to subsection (a) shall be a liability of the 

16 trust.’’. 

17 (b) CLERICAL AMENDMENT.—The table of chapters 

18 for subtitle B is amended by adding at the end the fol19 lowing new item: 

‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply— 

22 (1) to trusts created on or after the date of the 

23 enactment of this Act; 

24 (2) to any portion of a trust established before 

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1 utable to a contribution made on or after such date; 

2 and 

3 (3) to any portion of a trust established before 

4 the date of the enactment of this Act to which sec5 tion 2901(a) of the Internal Revenue Code of 1986 

6 (as added by subsection (a)) applies by reason of a 

7 transaction described in section 2901(b)(2) of such 

8 Code on or after such date. 

9 SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS10 FER TAX EXEMPTION FOR TRANSFERS TO 

11 CERTAIN PERSONS. 

12 (a) IN GENERAL.—Section 2642 is amended by add13 ing at the end the following new subsection: 

14 ‘‘(h) ELIMINATION OF GST EXEMPTION FOR TRANS15 FERS TO CERTAIN PERSONS.— 

16 ‘‘(1) IN GENERAL.— 

17 ‘‘(A) TRANSFER TO NON-EXEMPT PER18 SON.—In the case of any direct skip or taxable 

19 distribution made to any person who is not an 

20 exempt person, the inclusion ratio shall be 1. 

21 ‘‘(B) TAXABLE TERMINATION.—In the 

22 case of any taxable termination which occurs at 

23 any time immediately after no exempt person is 

24 a beneficiary of the trust, the inclusion ratio 

25 shall be 1. 


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1 ‘‘(C) EXEMPT PERSON.— 

2 ‘‘(i) IN GENERAL.—For purposes of 

3 this subsection, the term ‘exempt person’ 

4 means— 

5 ‘‘(I) a natural person— 

6 ‘‘(aa) who is assigned to a 

7 generation which is 2 or fewer 

8 generations below the generation 

9 assignment of the transferor, or 

10 ‘‘(bb) whose date of birth 

11 precedes the date on which the 

12 trust was created, or 

13 ‘‘(II) a trust in which all inter14 ests are held by persons described in 

15 subclause (I). 

16 ‘‘(ii) EXCEPTION.—For purposes of 

17 clause (i)(II), any interest which is used 

18 primarily to postpone or avoid the applica19 tion of this subsection shall be disregarded. 

20 ‘‘(2) DATE OF CREATION.— 

21 ‘‘(A) IN GENERAL.—For purposes of deter22 mining the date on which a trust was created 

23 under paragraph (1)(C)(i)(I)(bb), if the trust 

24 was created before January 1, 2024, such trust 


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1 shall be deemed to have been created on Janu2 ary 1, 2024. 

3 ‘‘(B) DATE OF CREATION OF POUR-OVER

4 TRUSTS.— 

5 ‘‘(i) IN GENERAL.—In the case of any 

6 generation-skipping transfer of property 

7 which involves the transfer of property 

8 from one trust to another trust, the date 

9 of the creation of the transferee trust shall 

10 be treated as being the earlier of— 

11 ‘‘(I) the date of the creation of 

12 such transferee trust, or 

13 ‘‘(II) the date of the creation of 

14 the transferor trust. 

15 ‘‘(ii) MULTIPLE TRANSFERS.—In the 

16 case of multiple transfers to which clause 

17 (i) applies— 

18 ‘‘(I) the date of the creation of 

19 the transferor trust shall be deter20 mined under such clause, and 

21 ‘‘(II) subsequent to the deter22 mination described in subclause (I), 

23 the date of the creation of the trans24 feree trust shall be determined under 

25 such clause. 


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1 ‘‘(3) GENERATION ASSIGNMENT.—For purposes 

2 of this subsection, the provisions of section 2653(a) 

3 shall not apply. 

4 ‘‘(4) REGULATIONS.—The Secretary may pre5 scribe such regulations or other guidance as may be 

6 necessary or appropriate to carry out this sub7 section.’’. 

8 (b) REPEAL.—Section 1433(b)(2) of the Tax Reform 

9 Act of 1986 (Public Law 99–514) is repealed. 

10 (c) EFFECTIVE DATES.— 

11 (1) IN GENERAL.—The amendment made by 

12 subsection (a) shall take effect on the date of the en13 actment of this Act. 

14 (2) REPEAL.—The amendment made by sub15 section (b) shall apply to generation-skipping trans16 fers (within the meaning of section 2611 of the In17 ternal Revenue Code of 1986) made after the date 

18 of enactment of this Act. 

19 SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 

20 GIFTS. 

21 (a) IN GENERAL.—Paragraph (1) of section 2503(b) 

22 is amended to read as follows: 

23 ‘‘(1) IN GENERAL.— 

24 ‘‘(A) LIMIT PER DONEE.—In the case of 

25 gifts made to any person by the donor during 


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1 the calendar year, the first $10,000 of such 

2 gifts to such person shall not, for purposes of 

3 subsection (a), be included in the total amount 

4 of gifts made during such year. 

5 ‘‘(B) CUMULATIVE LIMIT PER DONOR.— 

6 ‘‘(i) IN GENERAL.—The aggregate 

7 amount excluded under subparagraph (A) 

8 with respect to all transfers described in 

9 clause (ii) made by the donor during the 

10 calendar year shall not exceed twice the 

11 dollar amount in effect under such sub12 paragraph for such calendar year. 

13 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA14 TION.—The transfers described in this 

15 clause are— 

16 ‘‘(I) a transfer in trust, 

17 ‘‘(II) a transfer of an interest in 

18 a passthrough entity, 

19 ‘‘(III) a transfer of an interest 

20 subject to a prohibition on sale, and 

21 ‘‘(IV) any other transfer of prop22 erty that, without regard to with23 drawal, put, or other such rights in 

24 the donee, cannot immediately be liq25 uidated by the donee.’’. 


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1 (b) CONFORMING AMENDMENT.—Section 2503 is 

2 amended by striking subsection (c). 

3 (c) REGULATIONS.—The Secretary of the Treasury, 

4 or the Secretary of the Treasury’s delegate, may prescribe 

5 such regulations or other guidance as may be necessary 

6 or appropriate to carry out the amendments made by this 

7 section. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to any calendar year beginning 

10 after the date of the enactment of this Act. 

11 SEC. 407. CLARIFICATION REGARDING DISALLOWANCE OF 

12 STEP-UP IN BASIS FOR PROPERTY HELD IN 

13 CERTAIN GRANTOR TRUSTS. 

14 (a) IN GENERAL.—Section 1014 is amended— 

15 (1) by redesignating subsection (f) as sub16 section (g), and 

17 (2) by inserting after subsection (e) the fol18 lowing: 

19 ‘‘(f) PROPERTY HELD IN CERTAIN GRANTOR

20 TRUSTS.—This section shall not apply to property— 

21 ‘‘(1) held in a trust of which the transferor is 

22 considered the owner under subpart E of part I of 

23 subchapter J, and 


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1 ‘‘(2) if, after the transfer of such property to 

2 the trust, such property is not includible in the gross 

3 estate of the transferor for purposes of chapter 11.’’. 

4 (b) CONFORMING AMENDMENT.—Section 6662(k) is 

5 amended by striking ‘‘1014(f)’’ and inserting ‘‘1014(g)’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to transfers after the date of the 

8 enactment of this Act. 

9 (d) NO INFERENCE.—No inference may be drawn 

10 from the amendments made by this section with respect 

11 to the application of section 1014 of the Internal Revenue 

12 Code of 1986 to property described in subsection (f) of 

13 such section (as added by subsection (a)) which was trans14 ferred on or before the date of enactment of this Act. 

15 SEC. 408. LIMITATION ON DISCOUNTS; VALUATION RULES 

16 FOR CERTAIN TRANSFERS OF NONBUSINESS 

17 ASSETS. 

18 (a) IN GENERAL.—Chapter 14 of subtitle B is 

19 amended by adding at the end the following new section: 

20 ‘‘SEC. 2705. LIMITATION ON DISCOUNTS; VALUATION RULES 

21 FOR CERTAIN TRANSFERS OF NONBUSINESS 

22 ASSETS. 

23 ‘‘(a) LIMITATION ON DISCOUNT BY REASON OF FAM24 ILY CONTROL.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sub2 title, in the case of the transfer of any interest in 

3 an entity other than an interest which is actively 

4 traded (within the meaning of section 1092), if the 

5 transferor, the transferee, and members of the fam6 ily of the transferor and transferee have control of 

7 such entity immediately before such transfer, no dis8 count shall be allowed— 

9 ‘‘(A) by reason of the fact that the trans10 feror or transferee does not have control of 

11 such entity, 

12 ‘‘(B) by reason of the lack of marketability 

13 of the interest, or 

14 ‘‘(C) for any other reason. 

15 ‘‘(2) DEFINITIONS.—In this subsection, the 

16 terms ‘control’ and ‘member of the family’ have the 

17 same meanings given such terms in section 2704(c). 

18 ‘‘(3) ATTRIBUTION.—For purposes of this sec19 tion, the rule of section 2701(e)(3) shall apply for 

20 purposes of determining the interests held by any in21 dividual. 

22 ‘‘(b) VALUATION RULES FOR CERTAIN TRANSFERS

23 OF NONBUSINESS ASSETS.— 

24 ‘‘(1) IN GENERAL.—For purposes of this sub25 title, in the case of the transfer of any interest in 


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1 an entity other than an interest which is actively 

2 traded (within the meaning of section 1092)— 

3 ‘‘(A) the value of any nonbusiness assets 

4 held by the entity with respect to such interest 

5 shall be determined as if the transferor had 

6 transferred such assets directly to the trans7 feree (and no valuation discount shall be al8 lowed with respect to such nonbusiness assets), 

9 and 

10 ‘‘(B) such nonbusiness assets shall not be 

11 taken into account in determining the value of 

12 the interest in the entity. 

13 ‘‘(2) NONBUSINESS ASSETS.—For purposes of 

14 this subsection— 

15 ‘‘(A) IN GENERAL.—The term ‘nonbusi16 ness asset’ means any asset other than an asset 

17 which is used in the active conduct of a trade 

18 or business. 

19 ‘‘(B) PASSIVE ASSETS TREATED AS NON20 BUSINESS ASSETS.— 

21 ‘‘(i) IN GENERAL.—For purposes of 

22 subparagraph (A), a passive asset shall be 

23 treated as a nonbusiness asset unless— 

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1 tion 1221(a) or is a hedge with re2 spect to such property, or 

3 ‘‘(II) the asset is real property 

4 used in the active conduct of 1 or 

5 more real property trades or busi6 nesses (within the meaning of section 

7 469(c)(7)(C)) in which the transferor 

8 materially participates and with re9 spect to which the transferor meets 

10 the requirements of section 

11 469(c)(7)(B)(ii). 

12 ‘‘(ii) MATERIAL PARTICIPATION.—For 

13 purposes of clause (i)(II), material partici14 pation shall be determined under the rules 

15 of section 469(h), except that section 

16 469(h)(3) shall be applied without regard 

17 to the limitation to farming activity. 

18 ‘‘(C) WORKING CAPITAL TREATED AS

19 USED IN TRADE OR BUSINESS.—Any asset (in20 cluding a passive asset) which is held as a part 

21 of the reasonably required working capital 

22 needs of a trade or business shall be treated as 

23 used in the active conduct of a trade or busi24 ness. 


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1 ‘‘(3) PASSIVE ASSET.—For purposes of this 

2 subsection, the term ‘passive asset’ means any— 

3 ‘‘(A) cash or cash equivalents, 

4 ‘‘(B) stock in a corporation or any other 

5 equity, profits, or capital interest in any entity, 

6 ‘‘(C) evidence of indebtedness, option, for7 ward or futures contract, notional principal con8 tract, or derivative, 

9 ‘‘(D) asset described in clause (iii), (iv), or 

10 (v) of section 351(e)(1)(B), 

11 ‘‘(E) annuity, 

12 ‘‘(F) real property used in 1 or more real 

13 property trades or businesses (as defined in sec14 tion 469(c)(7)(C)), 

15 ‘‘(G) asset (other than a patent, trade16 mark, or copyright) which produces royalty in17 come, 

18 ‘‘(H) commodity, 

19 ‘‘(I) collectible (within the meaning of sec20 tion 408(m)), or 

21 ‘‘(J) any other asset specified in regula22 tions prescribed by the Secretary. 

23 ‘‘(4) LOOK-THRU RULE.— 

24 ‘‘(A) IN GENERAL.—If a nonbusiness asset 

25 of an entity described in paragraph (1) consists 


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1 of a 10-percent interest in any other entity, this 

2 subsection shall be applied by disregarding the 

3 10-percent interest and by treating the entity 

4 as holding directly its ratable share of the as5 sets of the other entity. 

6 ‘‘(B) 10-PERCENT INTEREST.—The term 

7 ‘10-percent interest’ means— 

8 ‘‘(i) in the case of an interest in a cor9 poration, direct ownership of at least 10 

10 percent (by vote or value) of the stock in 

11 such corporation, 

12 ‘‘(ii) in the case of an interest in a 

13 partnership, direct ownership of at least 10 

14 percent of the capital or profits interest in 

15 the partnership, and 

16 ‘‘(iii) in any other case, direct owner17 ship of at least 10 percent of the beneficial 

18 interests in the entity.’’. 

19 (b) CONFORMING AMENDMENTS.— 

20 (1) Section 2031(b) of the Internal Revenue 

21 Code of 1986 is amended by inserting ‘‘(after appli22 cation of section 2705(b))’’ after ‘‘shall be deter23 mined’’. 


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1 (2) The table of sections of chapter 14 of sub2 title B of such Code is amended by adding at the 

3 end the following: 

‘‘Sec. 2705. Limitation on discounts; valuation rules for certain transfers of 

nonbusiness assets.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to transfers after the date of the 

6 enactment of this Act. 

7 SEC. 409. SURCHARGE ON HIGH INCOME ESTATES AND 

8 TRUSTS. 

9 (a) IN GENERAL.—Subchapter A of chapter 1 is 

10 amended by adding at the end the following new part: 

11 ‘‘PART VIII—SURCHARGE ON HIGH INCOME 

12 ESTATES AND TRUSTS 

‘‘Sec. 59B. Surcharge on high income estates and trusts. 

13 ‘‘SEC. 59B. SURCHARGE ON HIGH INCOME ESTATES AND 

14 TRUSTS. 

15 ‘‘(a) GENERAL RULE.—In the case of an estate or 

16 trust, there is hereby imposed (in addition to any other 

17 tax imposed by this subtitle) a tax equal to the sum of— 

18 ‘‘(1) 5 percent of so much of the modified ad19 justed gross income of the taxpayer as exceeds 

20 $200,000, plus 

21 ‘‘(2) 3 percent of so much of the modified ad22 justed gross income of the taxpayer as exceeds 

23 $500,000. 


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1 ‘‘(b) MODIFIED ADJUSTED GROSS INCOME.—For 

2 purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘modified ad4 justed gross income’ means adjusted gross income 

5 reduced by any deduction (not taken into account in 

6 determining adjusted gross income) allowed for in7 vestment interest (as defined in section 163(d)) or 

8 business interest (as defined in section 163(j)). 

9 ‘‘(2) ADJUSTED GROSS INCOME.—Adjusted 

10 gross income shall be determined as provided in sec11 tion 67(e) and reduced by the amount allowed as a 

12 deduction under section 642(c). 

13 ‘‘(c) SPECIAL RULES.— 

14 ‘‘(1) CHARITABLE TRUSTS.—Subsection (a) 

15 shall not apply to a trust all the unexpired interests 

16 in which are devoted to one or more of the purposes 

17 described in section 170(c)(2)(B). 

18 ‘‘(2) NOT TREATED AS TAX IMPOSED BY THIS

19 CHAPTER FOR CERTAIN PURPOSES.—The tax im20 posed under this section shall not be treated as tax 

21 imposed by this chapter for purposes of determining 

22 the amount of any credit under this chapter (other 

23 than sections 27 and 901) or for purposes of section 

24 55. 


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1 ‘‘(3) ELECTING SMALL BUSINESS TRUSTS.—For 

2 purposes of the determination of adjusted gross in3 come, section 641(c)(1)(A) shall not apply and all 

4 portions of any electing small business trust shall be 

5 treated as a single trust. 

6 ‘‘(d) REGULATIONS.—The Secretary shall issue such 

7 regulations or other guidance as may be necessary or ap8 propriate to carry out the purposes of this section, includ9 ing regulations or other guidance to prevent the avoidance 

10 of the purposes of this section.’’. 

11 (b) COORDINATION WITH CERTAIN PROVISIONS.— 

12 (1) INTEREST ON CERTAIN DEFERRED TAX LI13 ABILITY.—Section 453A(c) is amended by redesig14 nating paragraph (6) as paragraph (7) and by in15 serting after paragraph (5) the following new para16 graph: 

17 ‘‘(6) SURCHARGE ON HIGH INCOME ESTATES

18 AND TRUSTS TAKEN INTO ACCOUNT IN DETER19 MINING MAXIMUM RATE OF TAX.—For purposes of 

20 paragraph (3)(B), in the case of an estate or trust, 

21 the maximum rate of tax in effect under section 1 

22 shall be treated as being equal to the sum of such 

23 rate and the rates in effect under paragraphs (1) 

24 and (2) of section 59B(a).’’. 

25 (2) LIMITATION ON FOREIGN TAX CREDIT.— 


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1 (A) Section 904(b)(3)(E)(i)(I) is amended 

2 by inserting ‘‘increased, in the case of an estate 

3 or trust, by the sum of the rates set forth in 

4 paragraphs (1) and (2) of section 1A(a)’’ after 

5 ‘‘(whichever applies)’’. 

6 (B) Section 904(d)(2)(F) is amended by 

7 adding at the end the following: ‘‘For purposes 

8 of the first sentence of this subparagraph, in 

9 the case of an estate or trust, the highest rate 

10 of tax specified in section 1 shall be treated as 

11 being equal to the sum of such rate and the 

12 rates in effect under paragraphs (1) and (2) of 

13 section 59B(a).’’. 

14 (3) ELECTION BY INDIVIDUALS TO BE SUBJECT

15 TO TAX AT CORPORATE RATES.—Section 962(a)(1) 

16 is amended by striking ‘‘and 55’’ and inserting ‘‘55, 

17 and 59B’’. 

18 (4) INTEREST ON CERTAIN TAX DEFERRAL.— 

19 Section 1291(c)(2) is amended by adding at the end 

20 the following: ‘‘For purposes of the preceding sen21 tence, in the case of an estate or trust, the highest 

22 rate of tax in effect under section 1 shall be treated 

23 as being equal to the sum of such rate and the rates 

24 in effect under paragraphs (1) and (2) of section 

25 59B(a).’’. 


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1 (5) WITHHOLDING OF TAX ON FOREIGN PART2 NERS’ SHARE OF EFFECTIVELY CONNECTED IN3 COME.—Section 1446(b)(2) is amended by adding at 

4 the end the following flush sentence: 

5 ‘‘For purposes of subparagraph (A), in the case of 

6 a partner which is an estate or trust, the highest 

7 rate of tax in effect under section 1 shall be treated 

8 as being equal to the sum of such rate and the rates 

9 in effect under paragraphs (1) and (2) of section 

10 59B(a).’’. 

11 (6) PARTNERSHIP ADJUSTMENTS.— 

12 (A) Section 6225(b)(1) is amended by add13 ing at the end the following flush sentence: 

14 ‘‘For purposes of subparagraph (B), in the case of 

15 an estate or trust, the highest rate of tax in effect 

16 under section 1 shall be treated as being equal to 

17 the sum of such rate and the rates in effect under 

18 paragraphs (1) and (2) of section 59B(a).’’. 

19 (B) Section 6225(c)(4)(A) is amended— 

20 (i) by striking ‘‘subsection (b)(1)(A)’’ 

21 and inserting ‘‘subsection (b)(1)(B)’’, and 

22 (ii) by striking ‘‘or’’ at the end of 

23 clause (i), by adding ‘‘or’’ at the end of 

24 clause (ii), and by inserting after clause 

25 (ii) the following new clause: 


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1 ‘‘(iii) is not an estate or trust subject 

2 to one or both of the rates of tax in effect 

3 under paragraphs (1) and (2) of section 

4 59B(a),’’. 

5 (7) REQUIRED PAYMENTS FOR ENTITIES

6 ELECTING NOT TO HAVE REQUIRED TAXABLE

7 YEAR.—The second sentence of section 7519(b) is 

8 amended by inserting ‘‘and, in the case of an estate 

9 or trust, increased by the sum of the rates in effect 

10 under paragraphs (1) and (2) of section 59B(a)’’ be11 fore the period at the end. 

12 (c) CLERICAL AMENDMENT.—The table of parts for 

13 subchapter A of chapter 1 is amended by adding at the 

14 end the following new item: 

‘‘PART VIII—SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

18 SEC. 410. MODIFICATION OF RULES FOR VALUE OF CER19 TAIN FARM, ETC., REAL PROPERTY. 

20 (a) IN GENERAL.—Paragraph (2) of section 

21 2032A(a) of the Internal Revenue Code of 1986 is amend22 ed by striking ‘‘$750,000’’ and inserting ‘‘$3,000,000’’. 

23 (b) INFLATION ADJUSTMENT.—Paragraph (3) of sec24 tion 2032A(a) of such Code is amended— 

25 (1) by striking ‘‘1998’’ and inserting ‘‘2025’’, 


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1 (2) by striking ‘‘$750,000’’ each place it ap2 pears and inserting ‘‘$3,000,000’’, and 

3 (3) by striking ‘‘calendar year 1997’’ and in4 serting ‘‘calendar year 2024’’ in subparagraph (B). 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to estates of decedents dying, and 

7 gifts made, after December 31, 2024. 

8 SEC. 411. MODIFICATION OF ESTATE TAX RULES WITH RE9 SPECT TO LAND SUBJECT TO CONSERVATION 

10 EASEMENTS. 

11 (a) MODIFICATION OF EXCLUSION LIMITATION.— 

12 Subparagraph (B) of section 2031(c)(1) of the Internal 

13 Revenue Code of 1986 is amended by striking ‘‘$500,000’’ 

14 and inserting ‘‘$2,000,000’’. 

15 (b) MODIFICATION OF APPLICABLE PERCENTAGE.— 

16 Paragraph (2) of section 2031(c) of the Internal Revenue 

17 Code of 1986 is amended by striking ‘‘40 percent’’ and 

18 inserting ‘‘60 percent’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to estates of decedents dying, and 

21 gifts made, after December 31, 2024. 


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1 TITLE V—ACCESSIBILITY 

2 REQUIREMENTS 

3 SEC. 501. ACCESSIBILITY REQUIREMENTS. 

4 In the case of housing that is constructed, altered, 

5 or otherwise assisted using amounts made available to the 

6 Secretary of Housing and Urban Development under this 

7 Act or an amendment made by this Act, sections 8.22 and 

8 8.23 of title 24, Code of Federal Regulations (or any suc9 cessor regulations) shall be applied such that the number 

10 of dwelling units required to be accessible under those sec11 tions is twice the number that would otherwise be required 

12 to be accessible under those sections. 

Æ 


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